Using the asu1.sav SPSS data, answer the following questions with statistical output from SPSS and a brief explanation of your results:

1. Are bidders profit maximizers? Using a paired samples t-test, test for differences in means between Value and Bid.

2. Do demand and supply changes lead to changes in price? Using an independent samples t-test, test for differences in price across early and late rounds.

3. Do demand and supply changes lead to changes in quantity? Using a frequency distribution for Early,  t-test, test for differences in price across early and late rounds.

Successful completion of this assignment will generate towards a positive participation grade for 1/28.

Continued (2/3/10):  Using the asu1.sav SPSS data ...

4. Are bidders profit maximizers? Run a bivariate regression with Bid as the dependent variable and Value as the independent.

5. If this model were graphed with Bid on the vertical axis and Value on the horizontal, what are the intercepts?

6. Now estimate a multivariate regression with Round as an additional independent variable. How does your model change? Does it improve, worsen? Consider the coefficient estimates, t-stats, R-squared and F-statistic.

7. In your model for #6, save the "unstandardized residuals" as a new variable. What is its mean value? Explain this result considering the method of ordinary least squares.

8. Estimate a multivariate regression model with Cumulative Earnings as the dependent variable and Round and Early as the independent variables. How do buyer earnings change in each round (i.e., how much do earnings increase/decrease in round 1, round 2, etc)? How do buyer earnings change with Value?

9. Using your model in #8, if round = 0 and value = 0 what are predicted earnings?

10. In your model for #8, save the "unstandardized residuals" as a new variable. What is its mean value? Explain this result considering the method of ordinary least squares.

Using the bass.sav SPSS data ...

9. Estimate a logistic regression model with

10.