The demand for salt is relatively price inelastic while the demand for pizzazz is relatively price elastic ? explain
TASK 2
Although recent events in Hong Kong have created uncertainty, often such things can also provide opportunities for investors. As a first step, an investor considering the Hong Kong share market, examines the long term continuous returns for the Hang Seng. Use Excel’s Data Analysis/Descriptive Statistics to find the Hang Seng monthly returns from start of 1991 until August or September 20202 . (a) Calculate the 95% confidence interval for the monthly returns for the Hang Seng over this period. (b) As the investor is concerned about the possibility of negative returns, test to see whether the average monthly returns for the Hang Seng are less than or equal to zero. 3 Making reference to this hypothesis test, briefly discuss whether the investor should be worried about the possibility of negative returns if they invest in the Hong Kong share market. Discuss type 1 and type 2 error and how they may relate to this hypothesis test. (c) Test to see whether the monthly returns on the Hang Seng over this period are normally distributed using the Jarque-Bera test. This should be done in Excel, by calculating the Jarque-Bera statistic using the formulas from the notes and Data Analysis/Descriptive Statistics.4 Using the results of this test, comment on the accuracy of the probabilities calculated in parts (a) and (b) of this question. (d) The Hang Seng monthly returns over the sample period are negatively skewed. Explain why this is the case and the implications for investment decisions. (e) Using the continuous returns on the Hang Seng, determine whether the rises and falls are independent using a runs test. What are the implications of your findings?
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but you proved you are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 11***| Rating: ⭐⭐⭐⭐⭐
"This company is the best there is. They saved me so many times, I cannot even keep count. Now I recommend it to all my friends, and none of them have complained about it. The writers here are excellent."
"Order a custom Paper on Similar Assignment at essayfount.com! No Plagiarism! Enjoy 20% Discount!"
