Interpreting integrity tests data on a regression analysis equation

I need someone to critically assess the relative merits/weaknesses of a economic modeling equation and the subsequent integrity tests performed on the 40 year time series data. Attached is a word document with screenshots of various EViews results/tests/diagrams, etc and an excel file with the associated data. Also attached is the EViews file I am using to analyze the data. A brief comment on each screenshot, what it means, raise red flags (and yellow flags) of flaws in the data, etc.....and if heteroskedasticity, multicollinearity, autocorrelation is present how specifically to compensate for it. Section 1 of the word doc uses the basic equation and Section 2 looks at the same equatio... click for more

Suppose you make a $2,000 investment in a risky venture...

Suppose you make a $2,000 investment in a risky venture. There is a 60% chance that the payoff from the investment will be $5,000, a 15% chance that you will just get your money back, and a 25% chance that you will receive nothing at all from your investment. a. Find the expected value of the payoff from your investment of $2,000. b. Find the expected value of the net profit from your investment of $2,000. c. If you invest $6,000 in the risky venture instead of $2,000, and the possible payoffs triple accordingly, what will be the expected value of the net profit from the $6,000 investment?

problem

The P/E ratio (price earnings) ratio for each stock is determined by dividing the price of a share of stock by the earnings per share reported by the company for the most recent four quarters. A sample of 10 stocks taken from the Wall Street Journal (on September 29th, 2000) provided the following P/E ratios: 5, 7, 9, 12, 14, 24, 20, 15, 3, 28. a. What is the point estimate of the mean and the Standard Deviation P/E ratio for the population of all stocks listed on the New York Stock Exchange? b. At 98% confidence, what is the interval estimate of the mean P/E ratio for the population of all stocks listed on the New York Stock Exchange? c. Test (using the two tailed test) at ... click for more

Return rates

The following table gives the anticipated one-year rates of return from a certain investment and their associated probabilities. Rate of Return X, % Probability, Pi -20 0.10 -10 0.15 10 0.45 25 0.25 30 0.05 a) Calculate the expected rate of return, E(X). b) Calculate the Variance and the Standard deviation of the returns. c) What's the probability for this investment to yield a return of less than 10 %? d) What's the probability for the returns of this investment to be between at least 10 % and at most 25 %?

Joint probability

The joint probability distribution on the returns of two securities X and Y is shown in the table below. X Y 7 10 14 8 0.12 0.03 0.3 9 0.15 0.09 0.06 10 0.05 0.18 0.02 a. Calculate the expected return for each security b. Calculate the variance and standard deviation for each security c. Suppose an investor would like to constitute a portfolio of 40 % of X and 60 % of Y, what will be the expected return and the risk associated to this portfolio? Need to verify my method of solving this problem. i am not very good with joint probabilities