Financial Econometrics Coursework Essay Example | Topics and Well Written Essays - 2000 words

Financial Econometrics Coursework - Essay Example In 2003, the U.S. Securities and Exchange Commission (SEC) mentioned that the R-square of the regression analysis was insufficient to determine the effectiveness of hedging. In a speech by a professional accounting fellow from the office of the chief accountant of the U.S. Securities and Exchange Commission, stated that determination of hedge effectiveness should consider the slope of the coefficient of the regression analysis. This coefficient reflects the minimum variance hedge ratio.1 The interpretation of the regression slope coefficient is the average change in the dependent variable: real total expenditure on food for a unit increase in the independent variable: Real total expenditure on goods and services. The slope coefficient it 0.32, thus for every 1 unit change in real total expenditure on goods and services, there is a 0.32 unit change in real expenditure on food. Omission of an important independent variable such as real price of food relative to other goods will result in the decreased ability of the model to predict the real total expenditures on food given the real total expenditures on food. The independent variables used to predict 99.9% of the dependent variable: real consumption expenditure as indicated by the value of the adjusted-R Squared. The Durbin-Watson value of 1.85 indicates there is no signs of first-order serial correlation in the residuals of a time series regression. The values of Akaike info criterion (AIC) -268.2093 and Schwarz criterion -273.6530 are extremely low indicating the need for modification in the regression model by changing the independent variables. The t-statistic value could be compared with the critical t-value which is not available. The reported Probability is the p-value, or marginal significance level. Since this probability value of the regression analysis (F-statistic) is less than the size of the test, say 0.05, the null hypothesis could be rejected. This indicates that the

Simple Problem Article Example | Topics and Well Written Essays - 750 words

Simple Problem - Article Example th the cat, the bathtub for bathing the cat, towel for drying the cat, shampoo for rinsing out the dirt from the cat, cat bath seat for placing the cat during the bath, dryer for dry the cat finally after towel use, comb for smoothing down the cat’s hair, fragranced powder for keeping a pleasant fragrance on the cat after the bath, and a healthy environment for ensuring that the bath is carried out at a suitable location that is healthy for pets in terms of water etc. In this process of bathing Fluffy, the first step is to bring the cat seat and arrange it in the bathtub in a comfortable position. The second step is to sprinkle some water on the cat in order to prepare it for the bath. The next step in this process is to apply the shampoo on the cat and to ensure that its body is covered well with the shampoo. In the fourth step, we need to wash the cat well with water until there the shampoo completely left its body. The fifth step is to prepare the towel to dry off the cat. The next step is to dry the cat with a dryer in order to make sure that its body is completely dry. The seventh step is to comb the cat’s fur and the eighth and the last step is to apply fragranced powder on the cat. As it is fundamental to make sure that Fluffy receives a very good bath, it is important to plan an effective test which guarantees the objective fulfilled effectively. Therefore, I will start the entire process by making a plan in order to make sure that a successful cat bath has been done. First of all, the equipments to be used in the process of bathing the cat will be well documented and the pricing for each piece will be listed. Together with it, I will also document where I to get all these important equipments from. Next, I will record the steps involved in the process of bathing the cat. After designing this plan, I will divide the work equally based on who will best help me in bathing the cat and in getting the equipments at the right time. It will also be