Business, 02.02.2022 22:00 angie07253
Forecasting: (40 points) SHOW ALL DETAILED CALCULATIONS.
Suppose the following Demand equation is estimated for the most popular printers by using regression analysis: One example for Epson printer is as follows:
(standard errors in parentheses.)
Qx = 5500 - 10 Px + 0, 75 Ad - 3. 4 Py + 0.58 Inc
(1,732) (2.29) (1.36) (1.75) ( 0.15)
R2 = 0.65
Standard error of estimate = 34.3
Q = Quantity demanded
Px = Price of an Epson printer = $500
Ad = Monthly advertising expenditures (in thousands) 40 K = use 40 for calculations
Py = price of a related good = $350
Inc = average monthly income of buyers = $8,000
Answer the following questions based on the above equation and the data provided. (Show all work to receive full / partial credit)
Using the information given above, calculate the own price elasticity? Given your calculations, should Epson increase or reduce the price to maximize revenues
Calculate the advertising elasticity and show the impact of advertising on sales. Is it effective? If it is not, what other measures can Epson adopt to market their product to increase sales
Calculate the cross-price elasticity of demand for Epson printers? Is the related good a substitute or complement? Why?
Calculate the income elasticity of demand. What and how much impact will a recession leading to a drop in the average income by 5% on sales of this product? Why?
Which regression coefficients are statistically significant? Why? What does R2 actually mean? Explain? What steps can be taken to increase it to a higher level?
Answers: 3
Business, 21.06.2019 18:10
In a sumif conditional function, what should be the order of terms in the parentheses?
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Business, 22.06.2019 13:50
Suppose portugal has 700 workers and 26,000 units of capital, and france has 18,000 workers and 700 units of capital. technology is identical in both countries. assume that wine is the capital-intensive good and cloth is the labor-intensive good. which of the following statements is correct if the nations start trading with each other? a) wages will increase in portugal.b) rental rates in france will increase.c) wages in france will decrease.d) rental rates in portugal will increase.
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It is estimated that over 100,000 students will apply to the top 30 m.b.a. programs in the united states this year. a. using the concept of net present value and opportunity cost, when is it rational for an individual to pursue an m.b.a. degree. b. what would you expect to happen to the number of applicants if the starting salaries of managers with m.b.a. degrees remained constant but salaries of managers without such degrees decreased by 20 percent
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Business, 22.06.2019 20:50
The following accounts are from last yearās books at s manufacturing: raw materials bal 0 (b) 157,400 (a) 172,500 15,100 work in process bal 0 (f) 523,600 (b) 133,700 (c) 171,400 (e) 218,500 0 finished goods bal 0 (g) 477,000 (f) 523,600 46,600 manufacturing overhead (b) 23,700 (e) 218,500 (c) 27,700 (d) 159,400 7,700 cost of goods sold (g) 477,000 s manufacturing uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. what is the amount of cost of goods manufactured for the year
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Forecasting: (40 points) SHOW ALL DETAILED CALCULATIONS.
Suppose the following Demand equation is...
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