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TUTORIAL SESSIONS
PART THREE
Given the linear trend and log-linear trend for copper sales of Malanday
Mining Corp. (in thousands of tons) from the 1 st quarter of 2001 to the last
quarter of 2004.
St = 364.66 + 6.475t
t-stat (1.96)
Adjusted R2 = 0.16
t-stat (2.07)
Adjusted R2 = 0.18
A) Forecast copper sales of Malanday Mining Corp. using the linear and
log-linear trend equations in each quarter of 2005.
B) Which form of the trend equation fits the historical data better?
DR. ABRAHAM C. CAMBA JR.
Department of Economics, San Beda College, Mendiola, Manila
Office Enterprise (OE) produces a line of metal office file cabinets. The
company’s economist, having investigated a large number of past data, has
established the following equation of demand for these cabinets:
Project Project
C D
Investment at period t Ph40,00 Ph40,00
=0 0 0
Cash inflow at t = 1 10,000 20,500
Cash inflow at t = 2 10,000 20,500
Cash inflow at t = 3 47,000 20,500
Suppose the demand functions (and inverse demand functions) for three
market segments are
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