While working with the sales manager of your firm, you have estimated the following model of sales volume as a function of monthly household income: In(Q) = 3.418 + 1.212 In where Q is monthly sales volume, I is monthly household income (in $000). What does the model predict sales volume when income is $4000 per month? 708134 163.73 It cannot be determined without more information None of the above
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- kad has estimated the following demand relationship for its product over the last four years, using monthly observations: ln qt = 4.932- 1.238 ln pt + 1.524 ln yt-1 + 0.4865ln qt-1 (2.54) (1.38) (3.65) (2.87) r 2= 0.8738 where q = sales in units, p = price in rs., y is income in rs,000, and the numbers in brackets are t-statistics. a. interpret the above model. b. make a sales forecast if price is rs. 9, income last month was rs. 25,000 and sales last month were 2,981 units. c. make a sales forecast for the following month if there is no change in price or income. d. if price is increased by 5 per cent in general terms, estimate the effect on sales, stating any assumptions.AD has estimated the following demand relationship for its product over the last four years, using monthly observations: ln Qt = 4.932- 1.238 ln Pt + 1.524 ln Yt-1 + 0.4865lnQt-1(2.54) (1.38) (3.65) (2.87)R2= 0.8738where Q = sales in units, P = price in Rs., Y is income in Rs,000, and the numbers in brackets are t-statistics.a. Interpret the above model.b. Make a sales forecast if price is Rs. 9, income last month was Rs. 25,000 and sales last month were 2,981 units.c. Make a sales forecast for the following month if there is no change in price or income.d. If price is increased by 5 per cent in general terms, estimate the effect on sales, stating any assumptions.Please solve this question and kindly use this formula F=P(1+in)
- In the formula ke >= (D1/P0) + g, what does (D1/P0) represent?A company produces and sells luxury goods and is able to control the demand for the product by varying the selling price. The relationship between price and demand is found to be: p=10-(42/D^2)+2Dwhere p is the price per unit in million dollars and D is the demand per year. The company is seeking to maximize its profit. The fixed cost is $59 million per year and the variable cost is $25 million per unit. The production capacity is 42 units per year, and the company produces at least 1 unit per month.a) Derive how to find the number of units that should be produced annually to maximize profit.b) What is the maximum profit per year?c) What is the annual breakeven point?d)What is the company’s range of profitable output per year?A company produces and sells luxury goods and is able to control the demand for the product by varying the selling price. The relationship between price and demand is found to be: p=10-(42/D^2)+2Dwhere p is the price per unit in million dollars and D is the demand per year. The company is seeking to maximize its profit. The fixed cost is $59 million per year and the variable cost is $25 million per unit. The production capacity is 42 units per year, and the company produces at least 1 unit per month. 1) What is the company’s range of profitable output per year?
- The following two equations were estimated using the data in MEAPSINGLE. The key explanatory variable is lexppp, the log of expenditures per student at the school level. math4 = 24.49 + 9.01 lexpp – 422 free – .752 Imedinc – .274 pctsgle (.071) (59.24) (4.04) n = 229, R² = .472, R² (5.358) (.161) 462. 149.38 + 1.93 lexppp – .060 free – 10.78 Imedinc – .397 pctsgle + .667 read4 (3.76) math4 (41.70) (2.82) (.054) (.111) (.042) n = 229, R = .749, R = .743. (i) If you are a policy maker trying to estimate the causal effect of per-student spending on math test performance, explain why the first equation is more relevant than the second. What is the estimated effect of a 10% increase in expenditures per student? (ii) Does adding read4 to the regression have strange effects on coefficients and statistical signifi- cance other than Brexppp? (iii) How would you explain to someone with only basic knowledge of regression why, in this case, you prefer the equation with the smaller adjusted…As the selling price of a product increases, demand decreases. Fewer people will buy a product if it is more expensive. This is a very important concept. The demand equation for new iSmarts is given by 0.025x , where p is the unit p = 100 price (in dollars) of the iSmart and x is the number of units produced. We can determine the total revenue (money earned for selling x iSmarts) by multiplying the number of items we sell, x and the price p. The total revenue obtained by producing and selling x iSmarts is given by = xp 100x – 0.025x². It makes sense that this function is quadratic. The company can price the iSmarts so high that no one will buy them and the revenue will be zero. The can also set the price to $0, but the revenue will still be $0, no matter how many iSmarts they "sell". In between, the graph is a parabola opening downward. Determine prices p that would keep revenue above 6530 dollars. Give your answers to 2 decimal places. The revenue will be above 6530 if price is…Retail chain Kroger has more than 2700 locations and is the largest supermarket in the United States based on revenue. Kroger has invested heavily in data, technology, and analytics. Feeding predictive models with data from an infrared sensor system called QueVision to anticipate when shoppers will reach the checkout counters, Kroger is able to alert workers to open more checkout lines as needed. This has allowed Kroger to lower its average checkout time from four minutes to less than 30 seconds (Retail Touchpoints). Consider the data in the file Checkout. The file contains 32 observations. Each observation gives the arrival time (measured in minutes before 6 p.m.) and the shopping time (measured in minutes). DATA file a. Select the correct scatter diagram for arrival time as the independent variable. A. 60 50 40 30 20 10 Shopping Time (Minutes) 20 40 60 8- 80 Arrival Time (Minutes before 6 p.m.) 100 120 140 160
- All questions utilize the multivariate demand function for Smooth Sailing sailboats in C6 on text page 83. Compute to three decimal places. Initial values are: PX = $9500 PY = $10000 I = $15000 A = $170000 W = 160 This function is: Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W 1.(a). Use the above to calculate the arc price elasticity of demand between PS = $9000 decreasing to PS = $8000. The arc elasticity formula is: 1.(b). Judging from the computation in (a), do you expect the revenue resulting from the decrease in Ps to $8000 to increase, remain the same, or decrease relative to the revenue at Ps = $9000. (Hint: see the table on page 65 of Truett). Explain your choice. 1.(c). Calculate the point elasticity of demand for Smooth Sailing sailboats at PS = $9000 (which should make Qs = 101600). The formula is: 1.(d). Does this elasticity value indicate that Smooth Sailing demand is relatively responsive to changes in the price of these sailboats? Explain…X(t) is a wide sense stationary stochastic process with autocorrelation function sin(271000r) R„(T)=10- 271000r The process Y(t) is a version of X(t) delayed by 50 micro seconds. {Y(t) = X(t - t0)} (a) Derive the autocorrelation function of Y (t). (b) Derive the cross-correlation function of X(t) and Y (t). (c) Are X(t) and Y (t) jointly wide sense stationary? IUnloaded File DetailsA first year student estimated a linear consumption function and found out that Ct = 200 + 0.65Yc + 0.25 Ct t-1. Give economic interpretation of the above result, clearly explaining the meaning of the intercept, variables and the coefficients.