7.3 management proposed the following regression model to predict sales at a fast-food outlet: yi 5 b0 1 b1x1,i 1 b2x2,i 1 b3x3,i 1ei where y i 5 sales ($1000s) x 1, i 5 number of competitors within one mile x 2, i 5 population within one mile (1000s) x 3, i 5 1 if a drive up window is present and 0 otherwise the following estimated regression equation was developed after 20 outlets were surveyed: y^i 5 10.1 2 4.2x1,i 1 6.8x2,i 1 15.3x3,i a. what is the expected amount of sales attributable to the drive-up window? b. predict sales for a store with two competitors, a population of 8,000 within one mile, and no drive-up window. c. predict sales for a store with one competitor, a population of 3,000 within one mile, and a drive-up window.

Problems and applications q3 suppose the demand for french bread falls. illustrate the effect this has on the market for french bread. demand supply price of french bread quantity of french bread d 1 d 2 supply producer surplus in the market for french breadincreases . illustrate the effect the quantity change in french bread has on the market for flour. demand supply price of flour quantity of flour d 1 d 2 s 1 s 2 producer surplus in the market for flour .

Identify the accounting assumption or principle that is described below. (a) select the accounting assumption or principle is the rationale for why plant assets are not reported at liquidation value. (note: do not use the historical cost principle.) (b) select the accounting assumption or principle indicates that personal and business record-keeping should be separately maintained. (c) select the accounting assumption or principle assumes that the dollar is the "measuring stick" used to report on financial performance. (d) select the accounting assumption or principle separates financial information into time periods for reporting purposes. (e) select the accounting assumption or principle measurement basis used when a reliable estimate of fair value is not available. (f) select the accounting assumption or principle dictates that companies should disclose all circumstances and events that make a difference to financial statement users.

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.