Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 4, Problem 1.1CE
To determine
Multiple linear regression model to estimate the demand function.
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Students have asked these similar questions
Hello,
I am trying to find the equations on my calculator for the price-demand and price supply equations. The data is in the attached image.
I think I am doing something wrong, but not sure what.
I found the quadratic regression model for the first set of data using my calculator, but I used the p=D(x) as list one, and x, as list two. I came up with
0.028x^2-23x +5743
is this right? or do I need the reverse the order?
For the price-supply data I but the p=S(x) as list 1 and x as list 2 and I got the linear regression function:
2 5.1x+342
Can you please let me know if I am on the right track?
The Ipod Touch has been out for several years now and a lot of data has been collected.
There is a functional relationship between the Price of an IPod Touch and Weekly Demand.
Below is a table of data that have been collected
Price P ($) Weekly Demand S (1,000s)
150
207
170
208
190
192
210
190
230
185
250
169
A.. Find the linear model that best fits this data using regression and enter the model below
(for entry round the slope value to nearest 0.01 and constant parameter to nearest 1)
T(p) =
Now answer these two questions:
B.. What does the model predict will be the weekly demand if the price of an ipod touch is $191 ?
(nearest 100)
C.. According to the model at what should the price be set in order to have a weekly demand of
194,800 ipod Touches? $
(nearest $1)
Note: In the "real" world Apple sold about 20 million Ipod Touch's from Sept. 2007-Sept. 2009
Sally Sells Sea Shells by the Sea Shore and collects all sales dataNow she is curious to find out what the elasticity of demand is for her shells Assume they are all the same type and quantity She scatter plots the data and finds there is a linear relationship that looks ripe for a regression estimation of the price response function for her shells The slope of her regression line is 61. Currently, her average daily price is 11.74 and she sells 95 quantity at that priceCalculate the point elasticity of demand for her sea shells
Chapter 4 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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