Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 19P
For the data below (3.4 .3)
- a. Find the regression equation, y = b0 + b1x.
- b. If x = 170orders, how many shipments are expected?
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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.
US Auto Company would like to offer rebates to its customers in order to increase sales. If it lowers prices sales will increase. This will depend on the price elasticity of demand. Assume that the price elasticity of demand is 1.5. This firm is considering a $400 rebate on its cars. Also assume the following information on prices and costs before the rebates:
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Chapter 3 Solutions
Engineering Economy (17th Edition)
Ch. 3 - A green (environmentally friendly) office building...Ch. 3 - You are planning to build a new home with...Ch. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prob. 10P
Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - The capital investment cost for a...Ch. 3 - The capacity of a switch grass-fueled ethanol...Ch. 3 - Prob. 16PCh. 3 - The time to assemble the first unit on a...Ch. 3 - Prob. 18PCh. 3 - For the data below (3.4 .3) a. Find the regression...Ch. 3 - A company that manufactures shuttle cars and mines...Ch. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 28SECh. 3 - Prob. 31CSCh. 3 - Prob. 32CSCh. 3 - Prob. 36FECh. 3 - Prob. 37FECh. 3 - Prob. 38FECh. 3 - Prob. 39FECh. 3 - Prob. 40FECh. 3 - Prob. 41FE
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