The Jupyter file includes the questions, the empty code chun…

The Jupyter file includes the questions, the empty code chunk sections for your code, and the text blocks for your responses. Answer the questions below by completing the Jupyter file. You may make slight adjustments to get the file to knit/convert but otherwise keep the formatting the same. Once you’ve finished answering the questions, submit your responses in a single PDF file (just like the homework data analysis assessments). You must submit a PDF file to BOTH GradeScope (via submission link) and Canvas (via file upload). You have 10 minutes to submit to GradeScope before submission close.  There are 3 questions  each with sub-questions. The number of points for each question is provided for each question. Partial credit may be given if your code is correct but your conclusion is incorrect or vice versa. Next Steps: Place the template and data files under ISyE6402Main/Midterm2. You may need to create this folder. Read the question and create the code necessary within the code chunk section immediately below each question.  Type your answer to the questions in the text block provided immediately after the response prompt. Once you’ve finished answering all questions, knit this file and submit the knitted file as PDF to BOTH GradeScope and Canvas.   Ready? Let’s begin. We wish you the best of luck! Data Set  (right-click the link and select to open in new window/tab) Midterm2data.csv R Starter Template Midterm_Exam_2_Part_2_R.ipynb Python Starter Template Midterm_Exam_2_Part_2_Python.ipynb Remark Start your submission early: Make sure to start submitting your exam at least 10 minutes before the end of the exam time. It is your responsibility to track the time and submit before the deadline. PDF issues: If you are unable to submit a PDF for any reason, you may upload your .ipynb file instead. A 10% penalty will apply in this case. Unable to upload: If you cannot upload your exam file, you must immediately attach the file as a comment on the exam page via Grades-> Midterm Exam – Midterm -> Comment box. Late submissions: Submissions within 5 minutes after the exam ends will incur a 5% penalty. Submissions between 5 and 15 minutes after the exam ends will incur a 10% penalty. Submissions more than 15 minutes after the exam ends will receive zero points. No extensions or re-takes will be allowed. If you missed submitting on GradeScope: You must: Write a private post on Piazza. Complete the Midterm 2 GradeScope Resubmission Request Do NOT attach your exam file via a Piazza post to the instructors, as it could compromise the exam process. Any submission through Piazza alone will not be considered.

Background and Instructions In this exam, you will analyze…

Background and Instructions In this exam, you will analyze a monthly macro-financial dataset covering the period from January 2000 to December 2025. The dataset includes three key variables designed to reflect realistic interactions between financial conditions, economic activity, and risk dynamics: – Financial Returns: monthly returns of a broad financial asset index, characterized by time-varying volatility. – Economic Activity Indicator: a monthly measure of real economic conditions, such as industrial production growth or a business activity index. – Risk Conditions Index: a monthly indicator capturing changes in financial or macroeconomic risk, such as credit conditions or uncertainty in the economy. The data will be structured with a training period covering up to June 2025 , while the last six months ( July 2025 to December 2025 ) will serve as the test period for evaluating your forecasts. This exam is divided into three distinct parts, each focusing on a different aspect of time series modeling: – ARMA–GARCH Modeling You will model the financial returns series (*Financial Returns*) to capture both mean dynamics and volatility clustering. – Multivariate Modeling (VAR) You will explore interactions between *Financial Returns*, *Economic Activity Indicator*, and *Risk Conditions Index* using multivariate time series techniques. – Forecasting You will generate forecasts for the test period and compare model performance across univariate and multivariate approaches. This exam will assess how effectively you apply Time Series Analysis to macro-financial data, validate models thoroughly, interpret dynamic relationships, and present findings in a clear and insightful manner. Please note: You are required to submit your final analysis as a PDF file. (Other formats will result in a penalty to the grade.)

Company A’s Data for Production Cost   Quantity Fixed…

Company A’s Data for Production Cost   Quantity Fixed Cost Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0     $55         1             $30 2   $55           3           $130 ∕3   4         $105 ∕4     5   155           6   225           7     370       90 8           60   9     610         10     760           If the market is perfectly competitive market, how many units of output will Company A produce? ____ units. Suppose that the market price is $110.