+61-413 786 465

[email protected]

## Economics

 Basic Economics Macroeconomics Microeconomics Business Economics Econometrics International Economics Managerial Economics Game Theory Public Economics

Q. 8. A manufacturer of calculate workstations gared average monthly sales figures from its 56 branch offices and dealerships across nation and estimated following demand for its product:

Q = 15,000 - 2.80P + 150A + 0.3PPC +0.35Pm +0.2Pc
t- statistic (5,23) (1.29) (175) (0.12) (0.17) (0.13)
R2 = 0.68 F = 21.25

variables and their assume values are

Q = Quantity
P = Cost of basic model = 7,000
A = Advertising expenditures (in thousands) = 52
Ppc = Average cost of personal calculate = 4,000
Pm = Average cost of mini calculate = 15,000
P¬c = Average cost of a leading competitor's workstation = 8,000

a. Calculate elasticity for each variable. On this basis, examine relative impact that each variable has on demand. Illustrate what implications do these results have for industry's marketing and pricing?

b. Conduct a t-test for statistical significance of each variable. Examine results of t-tests in light of policy implications mentioned.

c. Assume a manager evaluating se results suggests that interest rates and performance of calculate (typically measured in millions of instructions per second, or MIPS) are important determinants of demand for workstations and must be included in study. How would you respond to this suggestion? Elaborate.

Business Economics, Economics

• Category:- Business Economics
• Reference No.:- M9292842

Have any Question?

## Related Questions in Business Economics

### Standards drive instruction therefore how do standards

Standards "drive instruction," therefore, how do standards influence curriculum planning?

### Explain how the application of the pdca cycle can support a

Explain how the application of the PDCA cycle can support a competitive strategy of low cost leadership.

### Ford motors expects a new hybrid-engine project to produce

Ford Motors expects a new? Hybrid-engine project to produce incremental cash flows of \$ 95 million each year and expects these to grow at 4?% each year. The upfront project costs are? \$900 million and? Ford's weighted av ...

### A five-year bond with a yield of 11 continuously compounded

A five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of each year. a) What is the bond's price? b) What is the bond's duration? c) Use the duration to calculate the effect on the bo ...

### Image manufacturing is an electronics manufacturer and

IMAGE Manufacturing is an electronics manufacturer and retailer. Its main products are Ultrabook computers, PCs and calculators. The current price of the Ultrabook is \$ 600, the PC is \$700 and the calculator is \$30. This ...

### According to kulish what is about the design of the euro

According to Kulish, what is about the design of the euro currency that lessens its appeal compared to prior national currencies?

### How has the value of the euro changed compared to other

How has the value of the Euro changed, compared to other countries, over the past 10 years (since the Great Recession began)?

### In lecture we discussed why the production possibilities

In lecture we discussed why the production possibilities frontier (the boundary of the production possibilities set) is bowed 'outwards'. When might the production possibilities set be bowed 'inwards'? Give an example of ...

### In 2013 gallup conducted a poll and found a 95 confidence

In 2013, Gallup conducted a poll and found a 95% confidence interval of the proportion of Americans who believe it is the government's responsibility for health care. Give the statistical interpretation. I do not underst ...

### The standard deviation of the number of video game as

The standard deviation of the number of video game A's outcomes is 0.5479, while the standard deviation of the number of video game B's outcomes is 0.2498. Which game would you be likely to choose if you wanted players t ...

• 4,153,160 Questions Asked
• 13,132 Experts
• 2,558,936 Questions Answered

## Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

### Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

### Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

### Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of \$ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

### Compute the present value of an 1150 payment made in ten

Compute the present value of an \$1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

### Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of \$ 699 per year for 19 years, given a discount rate of 6 percent per annum. As