Instruction 14-19
Business Closures in Perth from 2005 to 2010

question 33

Short Answer

Instruction 14-19
Business closures in Perth from 2005 to 2010 were:
$$\begin{array} { | l | l | } \hline 2005 & 10 \\\hline 2005 & 11 \\\hline 2007 & 13 \\\hline 2008 & 19 \\\hline 2009 & 24 \\\hline 2010 & 35 \\\hline\end{array}$$ Microsoft Excel was used to fit both first-order and second-order autoregressive models, resulting in the following partial outputs:
SIMMARY OUTIPU - Second-Order Mode
$\begin{array}{ll}&\text { Coefficients }\\\text { Intercept } & -5.77 \\\text { X Variable 1 } & 0.80 \\\text { X Variable 2 } & 1.14\end{array}$

SIMMARY OUTPUT - Fist-Order Model
$\begin{array}{ll}&\text { Coefficients }\\\text { Intercept } & -4.16 \\\text { X Variable 1 } & 1.59\end{array}$
-Referring to Instruction 14-19,the residuals for the first-order autoregressive model are _______,_______,_______,_______and _______.

Apply the concept of the time value of money to various financial planning and investment situations.

Estimate the future value of annuities and single cash flows using appropriate interest rates.

Analyze and compare different savings and payment options to make informed financial decisions.

Calculate the cost required today to fund future financial obligations or desired financial goals.

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Definitions:

Representativeness Heuristic

A mental shortcut used to make judgments about the probability of an event under uncertainty, based on how similar it is to our typical idea of the event.

Framing

The process of presenting or constructing a concept, idea, or issue in a certain way to influence perception and judgment.

Representativeness Heuristic

A mental shortcut that involves judging the likelihood of an event or situation by comparing it to an existing prototype that already exists in our minds.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.