Business, 26.10.2021 20:50 chrissyg76
John obtains the following demand model for beef Q =9274.145–358.124P using a data set of 120 observations, where Q is measured in pounds and P is measured in dollars per pound. We change the measurement of quantity from pounds to thousand pounds; we also change the measurement of price from dollars per pound to dollars per thousand pounds. For example, if Q used to be 200 (which means 200 pounds), now it is 0.2 (which means 0.2 thousand pounds); if P used to 5 (which means 5 dollars per pound), now it is 5000 (which means 5000 dollars per thousand pounds). If we re-estimate the model using the same data except the above changes, what is the new slope?
a. - 0.358
b. - 358.124
c. - 3.581
d. - 358124
e. - 0.000358
Answers: 1
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John obtains the following demand model for beef Q =9274.145–358.124P using a data set of 120 observ...
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