Business, 11.03.2020 19:57 renee9913

The manager of Collins Import Autos believes the number of cars sold in a day (Q) depends on two factors: (1) the number of hours the dealership is open (H) and (2) the number of salespersons working that day(S). After collecting data for two months (53 days), the manager estimates the following log-linear model:Q = aHbSca. Explain how to transform the log-linear model into a linear form that can be estimated using multiple regression analysis. The computer output for the multiple regression analysis is shown below:Dependent Variable: LNQR-Square: 0.5452F-Ratio:29.97P-Value on F: 0.0001Observations: 53Variable: Parameter Estimate Standard Error TRatio PValueIntercept: 0.9162 0.2413 3.80 0.0004lnH 0.3517 0.1021 3.44 0.0012lnS 0.2550 0.0785 3.25 0.0021b. How do you interpret coefficients b and c? If the dealership increases the number of salesperson by 20 percent, what will be the percentage increase in daily sales?c. Test the overall model for statistical significance at the 5 percent significance level. d. What percent of the total variation in daily auto sales is explained by this equation? What could you suggest to increase this percentage?e. Test the intercept for statistical significance at the 5 percent level of significance. If H and S both equal 0, are sales expected to be 0? Explain why or why not. f. Test the estimated coefficient b for statistical significance. If the dealer decreases its hours of operations by 10 percent, what is the expected impact on daily sales?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 19:50

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.

Answers: 2

Answer

Business, 22.06.2019 23:30

Sole proprietorships produce more goods and services than does any other form of business organization.

Answers: 2

Answer

Business, 23.06.2019 01:30

Vortex company operates a retail store with two departments. information about those departments follows. department a department b sales $ 800,000 $ 450,000 cost of goods sold 497,000 291,000 direct expenses salaries 125,000 88,000 insurance 20,000 10,000 utilities 24,000 14,000 depreciation 21,000 12,000 maintenance 7,000 5,000 the company also incurred the following indirect costs. salaries $36,000 insurance 6,000 depreciation 15,000 office expenses 50,000 indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. additional information about the departments follows. department square footage number of employees a 28,000 75 b 12,000 50 required: 1. determine the departmental contribution to overhead and the departmental net income for department a and department b.

Answers: 2

Answer

Business, 23.06.2019 02:30

Markets and competition in a perfectly competitive market, all producers sell identical goods or services. additionally, there are many buyers and sellers. because of these two characteristics, both buyers and sellers in perfectly competitive markets are pricetakers . true or false: the market for lettuce does exhibit the two primary characteristics that define perfectly competitive markets. true false

Answers: 2

Answer

You know the right answer?

The manager of Collins Import Autos believes the number of cars sold in a day (Q) depends on two fac...

Questions