Problem
• You have been hired as a food/agricultural price analyst by a firm. You are given the task of calculating the effect of revenue gains/loss by industry participants due food recall event that occurred year ago, October 2020. For this, you have been provided with weekly prices of the food product under consideration for past five years through October 2021 at different levels of the supply chain. Explain the approach you would consider taking to address this problem. Use graphs and equations to explain the procedure as thoroughly as possible.
• According to the Real Estate Center of Texas A&M, there are seven land regions in Texas. You have been provided with land values of all seven regions for past 10 years. Now, you have been provided the task of establishing long-run relationships with these price series. As a pilot study, you have picked prices from two regions, Panhandle Plains and South Texas Plains. Explain how you would investigate long-run price relationships among land values of these two regions. State the tests and explain the methods you would use to establish the co-integrating price relationships.