A strategy sW ∈ S is a weakly dominant strategy equilibrium if sW ∈ Si is a weakly dominant strategy for all i ∈ N. That is if vi (sW, s−i) ≥ vi (s’i, s−i) for all s’i ∈ Si and for all s−i ∈ S−i. Provide an example of a game for which there is a weakly dominant strategy equilibrium, as well as another Nash equilibrium.
> Refer to the ANOVA table below. (a) State the degrees of freedom for the F test for overall significance. (b) Use Appendix F to look up the critical value of F for α = .05. (c) Calculate the F statistic. Is the regression significant overal
> Refer to the ANOVA table below. (a) State the degrees of freedom for the F test for overall significance. (b) Use Appendix F to look up the critical value of F for α = .05. (c) Calculate the F statistic. Is the regression significant overal
> Refer to the ANOVA table below. (a) State the degrees of freedom for the F test for overall significance. (b) Use Appendix F to look up the critical value of F for α = .05. (c) Calculate the F statistic. Is the regression significant overal
> Inspect the residual plot to check for heteroscedasticity and report your conclusions. Midterm and Final Exam Scores for Business Statistics Students Fall Semester 2011 (n = 58 students) Midterm Exam Score ……&aci
> A regression model to predict Y, the state-by-state 2005 burglary crime rate per 100,000 people, used the following four state predictors: X1 = median age in 2005, X2 = number of 2005 bankruptcies per 1,000 people, X3 = 2004 federal expenditures per capi
> Vail Resorts asked a random sample of guests to rate their satisfaction on various attributes of their visit on a scale of 1–5 with 1 = very unsatisfied and 5 = very satisfied. The estimated regression model was Y = overall satisfaction score, X1 = lift
> Which violations of regression assumptions, if any, do you see in these residual diagnostics? Explain. Normal Probability Plot Versus Predicted Y 99 1 90 50 -1 10 -2 1 1 -1.5 -1.0 -0.5 0.0 Residual Fitted Value Histogram Runs Plot versus Order 3 -1
> Which would be “high leverage” observations? a. Leverage hi = .15 in a regression with 5 predictors and 72 observations. b. Leverage hi = .18 in a regression with 4 predictors and 100 observations. c. Leverage hi = .08 in a regression with 7 predictors
> Using the “Vail Guest Satisfaction Survey” data, construct a correlation matrix of the 11 independent variables. The response variable is ovalue. (a). Identify the four pairs of independent variables that have the highest pairwise correlation values. D
> If arrivals follow a Poisson distribution with mean 1.2 arrivals per minute, find the probability that the waiting time until the next arrival will be (a) less than 1.5 minutes; (b) more than 30 seconds; (c) between 1 and 2 minutes.
> The same data set from exercise 13.19 also has gender information for each engineer. The binary variable Male = 1 indicates the engineer is male and Male = 0 indicates the engineer is female. Run the regression with Salary as the response variable and Ye
> Observations are taken on sales of a certain mountain bike in 30 sporting goods stores. The regression model was Y = total sales (thousands of dollars), X1 = display floor space (square meters), X2 5= competitors’ advertising expenditures (thousands of d
> The data set below shows a sample of salaries for 39 engineers employed by the Solnar Company along with each engineer’s years of experience. (a). Construct a scatter plot using Salary as the response variable and Years as the explan
> A model was developed to predict the length of a sentence (the response variable) for a male convicted of assault using the following predictor variables: age (in years), number of prior felony convictions, whether the criminal was married or not (1 = ma
> (a). Make a histogram (or normal probability plot) of the residuals and discuss its appearance. (b). Do you see evidence that your regression may violate the assumption of normal errors? Midterm and Final Exam Scores for Business Statistics Students Fa
> State you’re a priori hypothesis about the sign of the slope. Is it reasonable to suppose a cause and effect relationship? Midterm and Final Exam Scores for Business Statistics Students Fall Semester 2011 (n = 58 students) Midterm Exa
> Is the sample size sufficient to yield a good estimate? If not, do you think more data could easily be obtained, given the nature of the problem? Midterm and Final Exam Scores for Business Statistics Students Fall Semester 2011 (n = 58 students) Midter
> How do you imagine the data were collected? Midterm and Final Exam Scores for Business Statistics Students Fall Semester 2011 (n = 58 students) Midterm Exam Score …………&acir
> Are the variables cross-sectional data or time-series data? Midterm and Final Exam Scores for Business Statistics Students Fall Semester 2011 (n = 58 students) Midterm Exam Score ………â
> A basketball player took 35 free throws during the season. Her sequence of hits (H) and misses (M) is shown. Research question: At α = .01, is her hit/miss sequence random? H M M H H M H M M H H H H H M M H H M M H M H H H M H H H H M M M H H
> A supplier of laptop PC power supplies uses a control chart to track the output (in watts) of each unit produced. The pattern below shows whether each unit’s output was above (A) or below (B) the desired specification. Research question: At α = .05, do t
> Below are the top 20 U.S. football teams in the seventh and eighth weeks of a recent season, along with the points awarded to each team by a poll of coaches. Research question: At α = .01, based on these data, does the true rank correlation
> Are gasoline prices a potential policy tool in controlling carbon emissions? The table below shows 2001 gasoline prices (dollars per liter) and carbon dioxide emissions per dollar of GDP. Research question: At α = .05, based on these data,
> The management of a theme park obtained a random sample of the ages of 36 riders of its Space Adventure Simulator. (a). Make a nice histogram. (b). Did your histogram follow Sturges’ Rule? If not, why not? (c). Describe the distrib
> The table below shows ratings of 18 movies by two reviewers (on a 0 to 5 ✰ scale using half ✰ increments). Research question: At α = .05, based on these data, is the rank correlation between reviewers signi
> A newspaper article listed nutritional facts for 56 frozen dinners. From that list, 16 frozen dinners were randomly selected by using the random number method. Research question: Choose any two variables. At α = .01, based on this sample, i
> (a) Use MegaStat or MINITAB to perform a regression using seasonal binaries. Interpret the results. (b) Make monthly forecasts for 2010. If you can find data on the web, check your forecasts. Student Pilot Certificates Issued by Month, 2004-2009 Mon
> (a) Use MegaStat or MINITAB to deseasonalize the quarterly data on Coca-Cola’s revenues and fit a trend. Interpret the results. (b) Use MegaStat or MINITAB to perform a regression using seasonal binaries. Interpret the results. (c) Use
> (a) Plot the data on revolving credit (credit cards and home equity lines of credit are the two major types of revolving credit). (b) Use MegaStat or MINITAB to calculate seasonal indexes and trend. Is there a trend in the deseasonalized data? (c) Which
> (a) Plot the data on airplane shipments. (b) Can you see seasonal patterns? Explain. (c) Use MegaStat or MINITAB to calculate estimated seasonal indexes and trend. Is there a trend in the deseasonalized data? U.S. Manufactured General Aviation Shipm
> (a) Plot the data on air travel delays. (b) Can you see seasonal patterns? Explain. (c) Use MegaStat or MINITAB to calculate estimated seasonal indexes and trend. (d) Which months have the most delays? The fewest? Is this logical? (e) Is there a trend in
> (a) Plot the data on gas bills. (b) Can you see seasonal patterns? Explain. (c) Use MegaStat or MINITAB to calculate estimated seasonal indexes and trend. (d) Which months are the most expensive? The least expensive? Can you explain this pattern? (e) Is
> Refer to exercise 14.26. (a) Plot the dollar/pound exchange rate data. Make the graph nice, then copy and paste it so you have four copies. (b) Use MegaStat or MINITAB to perform a simple exponential smoothing using α = .05, .10, .20, and .
> (a) Use Excel, MegaStat, or MINITAB to fit an m-period moving average to the exchange rate data shown below with m = 2, 3, 4, and 5 periods. Make a line chart. (b) Which value of m do you prefer? Why? (c) Is a moving average appropriate for this kind of
> Which statement is false? Explain. a. Sampling error can be reduced by using appropriate data coding. b. Selection bias means that respondents are not typical of the target population. c. Simple random sampling requires a list of the population.
> Which type of statistic (descriptive, inferential) is each of the following? a. Estimating the default rate on all U.S. mortgages from a random sample of 500 loans. b. Reporting the percent of students in your statistics class who use Verizon. c. Using
> Hunting: Two hunters, players 1 and 2, can each choose to hunt a stag, which provides a rather large and tasty meal, or hunt a hare, also tasty, but much less filling. Hunting stags is challenging and requires mutual cooperation. If either hunts a stag
> Going to the Movies: There are two movie theatres in your neighbor- hood: Cineclass, which is located one mile from your home, and Cineblast, located 3 miles from your home, each showing three films. Cineclass is show- ing Casablanca, Gone with the Wind
> Weak dominance. We call the strategy profile sW ∈ S is a weakly dominant strategy equilibrium if siW∈ Si is a weakly dominant strategy for all i ∈ N. That is if vi (si, s−i) ≥ vi (s’i, s−i) for all s’i ∈ Si and for all s−i ∈ S−i. a. Provide an example of
> Price Competition: Imagine a market with demand p(q) = 100 − q. There are two firms, 1 and 2, and each firm i has to simultaneously choose it’s price pi. If pi < pj, then firm i gets all of the market while no one demands the good of firm j. If the price
> Real Estate Development: A real estate developer wishes to build a new development. Regulations impose an environmental impact study that will yield an “impact score,” which is an index number based on the impact the development will likely have on traff
> Alcohol Consumption: Recall the example in which you needed to choose how much to drink. Imagine that your payoff function is given by θa − 4a2, where θ is a parameter that depends on your physique. Every person may have a different value of θ, and it is
> Splitting Pizza: You and a friend are in an Italian restaurant, and the owner offers both of you an 8-slice pizza for free under the following condition. Each of you must simultaneously announce how many slices you would like; that is, each player i ∈ {1
> eBay’s recommendation: It is hard to imagine that anyone is not familiar with eBay© , the most popular auction website by far. The way a typical eBay auction works is that a good is placed for sale, and each bidder places a “proxy bid”, which eBay keeps
> Drilling for Oil: An oil drilling company must decide whether or not to engage in a new drilling venture before regulators pass a law that bans drilling on that site. The cost of drilling is $1,000,000. After drilling is completed and the drilling costs
> A player has three possible venues to choose from: going to a football game, going to a boxing match, or going for a hike. The payoff from each of these alternatives will depend on the weather. The following table gives the agentâ
> Political Campaigning: Two candidates are competing in a political race. Each candidate i can spend si ≥ 0 on adds that reach out to voters, which in turn increases the probability that candidate i wins the race. Given a pair of spending choices (s1, s2)
> Hotelling’s Price Competition: Imagine a continuum of potential buyers, located on the line segment [0, 1], with uniform distribution. (Hence, the “mass” or quantity of buyers in the interval [, b] is equal to b − .) Imagine two firms, players 1 and 2
> Negative Ad Campaigns: Each one of two political parties can choose to buy time on commercial radio shows to broadcast negative ad campaigns against their rival. These choices are made simultaneously. Due to government regulation it is forbidden to buy m
> More Oil: Chevron, the No. 2 US oil company, is facing a tough decision. The new oil project dubbed “Tahiti” is scheduled to produce its first commercial oil in mid-2008, yet it is still unclear how productive it will be. “Tahiti is one of Chevron’s five
> Asymmetric Bertrand: Consider the Bertrand game with c1(q1) = q1 and c2(q2) = 2q2, demand equal to p = 100 − q, and where firms must choose prices in increments of one cent. We have seen in section? that one possible Nash equilibrium is (p1*, p2*) = (1.9
> Surgery: A patient is very sick, and will die in 6 months if he goes untreated. The only available treatment is risky surgery. The patient is expected to live for 12 months if the surgery is successful, but the probability that the surgery fails and the
> Synergies: Two division managers can invest time and effort in creating a better working relationship. Each invests ei ≥ 0, and if both invest more than both are better off, but it is costly for each manager to invest. In particular, the payoff function for
> Popsicle stands: There are five lifeguard towers lined along a beach, where the left-most tower is number 1 and the right most tower is number 5. Two vendors, players 1 and 2, each have a popsicle stand that can be located next to one of five towers. The
> Bozoni is a renowned Swiss maker of fruit and vegetable juice, whose products are sold at specialty stores around Western Europe. Bozoni is considering whether to add cherimoya juice to its line of products. “It would be one of our more
> The n firm Cournot Model: Suppose there are n firms in the Cournot oligopoly model. Let qi denote the quantity produced by firm i, and let Q = qi+•••+qn denote the aggregate production. Let P (Q) denote the market clearing price (when demand equals Q) an
> Fruit Trees: You have room for up to two fruit bearing trees in your garden. The fruit trees that can grow in your garden are either apple, orange or pear. The cost of maintenance is $100 for an apple tree, $70 for an orange tree and $120 for a pear tree
> Hawk-Dove: The following game has been widely used in evolutionary biology to understand how “fighting” and “display” strategies by animals could coexist in a population. For a typical Hawk-Dove game there are resources to be gained (i.e. food, mates, te
> Roommates: Two roommates need to each choose to clean their apartment, and each can choose an amount of time ti ≥ 0 to clean. If their choices are t and tj, then player i’s payoff is given by (10 − tj) ti – ti2 . (This payoff function implies that the more
> Penalty Kicks: Imagine a kicker and a goalie who confront each other in a penalty kick that will determine the outcome of the game. The kicker can kick the ball left or right, while the goalie can choose to jump left or right. Because of the speed of the
> In a study involving responses of 175 young adult consumers’ social networking habits, the marketing researcher proposes that two constructs, credibility of social network posts, and centrality of social networks, are represented by a total of ten measur
> What is the difference between partial and full mediation?
> What is the additional layer of testing involved in MANOVA compared to ANOVA?
> Technology is making our behavior more and more difficult to keep secret. Mobile phones, RFID tags and GPS (Global Positioning Satellite) devices are ways that your location and movements might be tracked. While legitimate uses of this type of technology
> Sandy is a new marketing researcher at one of the top accounting firms in her town. A drug store client has hired the firm to help deal with its competitive situation. One of the partners comes in and tells Sandy that project calls for developing a quest
> What is an indirect effect? How is it computed?
> Sixty-six willing Australian drinkers helped a Federal Court judge decide that Tooheys did not engage in misleading or deceptive advertising for its 2.2 beer, which contains 2.2 percent alcohol, compared to 6 percent for other beers leading to a claim th
> Pedestrian field workers covered each block in the CBD area to obtain a physical inventory of the existing commercial base. Information, such as the company name, address, primary business activity, estimated frontage space, and other relevant informatio
> Congress passed a law setting up a National Do Not Call Registry. By law, salespeople cannot call numbers listed on this registry, but charities and researchers can still call these numbers. However, a recent Internet survey showed that less than 25 perc
> From his office window, Harvard Cooperative Society CEO, Jerry Murphy, can see customers shopping. They make their way through the narrow aisles of the crowded department store, picking up a sweatshirt here, trying on a baseball cap there, and checking o
> Vidal Sassoon, Inc. took legal action against Bristol-Myers over a series of TV commercials and print ads for a shampoo that had been named Body on Tap because of its beer content. The commercial featured a well-known high fashion model saying “In shampo
> Although interest groups express concerns about the impact of saltwater fishers on the fish population, no one really knows how many people fish for recreation or how many fish they catch. How could a marketer get an accurate sample? Some suggestions inc
> Frontier Golf Simulators is a new business that simulates the golf experience. Indoor golf simulators offer a chance to play some golf even in an urban setting. Simulators have the distinct advantage of being able to accurately show the player’s ball fli
> A retail consultant studies local Walmart stores to try to assess customer satisfaction with the shopping experience. She begins by examining the ACSI scores for retailers. In the late 2000s, Walmart corporate instituted a policy of increasing the width
> No-Charge Electronics owner Buzz Auphf wants to know how much product failure affects customer loyalty, so he hires a market researcher to conduct research to examine the question of “how do current customers react to different levels of product failure?
> Mazda Motor Europe wanted details about how consumers were using its website and whether finding information was easy. A research firm, Syzygy, used an eye-tracking device that uses infrared light rays to record what areas of a computer screen a user is
> What are the steps in interpreting multivariate dependent analysis techniques?
> The SAT and ACT college entrance exams once were completely multiple-choice, but both tests recently began including an essay portion (which is optional for the ACT). One survey suggests that some admission officers harbor doubts about the essay tests.
> After the September 11, 2001 terrorist attack, consumers showed a desire to tone down their consumer activities. At some point after a disaster, it is time to get back to business. Suppose you are approached by the owners of several delicatessens and ful
> Barton Boomer is a director of marketing research for a large research firm, and he has been asked to conduct research for a local restaurant chain, Eats-R-Wee. Mr. Big, VP-Operations for Eats-R-Wee, tells Barton that they are set to move across the bord
> Joe Brown, a 30-year veteran market researcher, is ready to enter the coffee shop business. He has some key research questions: • What markets in the United States hold the most promise for a new coffee shop? • What type of location is best for a coffee
> Describe the relationship between S and Σ with respect to SEM fit.
> Where do the DF originate for a SEM model?
> What do LISREL and SEM stand for? How does these terms relate to SEM in general?
> What is a moment in SEM terminology?
> What role does the matrix of standardized residuals produced by SEM play in assessing fit and drawing conclusions?
> What are composite factor scores?
> What does it mean for a variable to mediate the relationship between two other variables?
> What role does “distance” play in cluster analysis?
> How does one use a factor loading matrix (factor structure pattern) in interpreting factor analysis output?
> What is simple structure?
> Define K-means.
> If someone conducted one-way ANOVAs predicting the clustering variables using the cluster membership variable that was obtained from a cluster analysis procedure, what should the expectation of the results of those ANOVAs be?
> What is the entropy or pseudo R2?
> Explain what the likelihood value is used for in interpreting logistic regression results.
> How is cluster analysis different from factor analysis?
> What is a slopes test?
> What is a confusion matrix?
> Define dependence techniques and give examples of multivariate dependence techniques.
> What is a factor loading?
