*P&G over view *Business model *How P&G understand Chinese market and consumers? *Behavior of Chinese consumer for beauty products *P&G in cosmetics market *SWOT analysis *Problem & next step
Example 1. 1. The iterative rule po 1 and pk+1= 1.001pk for k=0, 1,..pro- duces a divergent sequence. The first 100 terms look as follows: P1=1.0170=(1.001010001.00100 p2=1011=(1001)(1.0000001 3=1012=(1001)(1.002011.00300 p100=1.0019(1.001)(1.104012)=1.105116
Testing for Unit roots Consider an AR(1): y=a+p +e,t Let Ho: p=1, (assume there is a unit root) Define 0=p-1 and subtract y, from both sides to obtain Ay,=a+ B+e, Unfortunately, a simple t-test is inappropriate, since this is an I(1) process ADickey-Fuller Test uses the t-statistic, but different critical values Economics 20- Prof anderson