(Answered) The manager of a large automobile dealership who wants to

Economics

Q. You are the manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months. Following are the average negotiated prices for each month and the quantities sold of a basic model (adjusted for various options) over this period of time.

a. Graph this information on a scatter plot. Estimate the demand equation. What do the regression results indicate about the desirability of discounting the price? Explain.

Month Price Quantity
Jan. 12,500 15
Feb. 12,200 17
Mar. 11,900 16
Apr. 12,000 18
May 11,800 20
June 12,500 18
July 11,700 22
Aug. 12,100 15
Sept. 11,400 22
Oct. 11,400 25
Nov. 11,200 24
Dec. 11,000 30
Jan. 10,800 25
Feb. 10,000 28

b. What other factors besides price might be included in this equation? Do you foresee any difficulty in obtaining these additional data or incorporating them in the regression analysis?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9156047
Price:- $17

Verified Expert

Priced at $34 Now at $17, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Economics

Use the following table to find thenbspsteady-state values

Use the following table to find the? steady-state values of the? capital-labor ratio and output if the? per-worker production function is y t = 2k t 0.3 . Saving rate (s) = 0.37 Depreciation rate = 0.04 population growt ...

Sixty percent of households say they would feel secure if

Sixty percent of households say they would feel secure if they had? $50,000 in savings. You randomly select 8households and ask them if they would feel secure if they had? $50,000 in savings. Find the probability that th ...

A forced-choice design is often used to compare the

A forced-choice design is often used to compare the attractiveness of pheromones to insects. A Y-tube is used. The pheromone is place on one branch; the control on the second branch; and the insect on the third branch. T ...

How many different ways can a person select 3 textbooks

How many different ways can a person select 3 textbooks from a possible 18 If 70 % of the people the population have internet access from their home, find the probabilty that from a group of 20 people exactly 8 have acce ...

What is monetary approach in neoclassical economic theory

What is monetary approach in Neoclassical Economic Theory? How is poverty defined under the monetary approach? What are the two main reasons that cause poverty under Neoclassical Economic Theory? Briefly describe each on ...

You are in charge of numbering the homes in a new

You are in charge of numbering the homes in a new subdivision. If we were to ue 0 through 9 as our number to use and we want to have 3 digit house numbers, how many unique homes numbers would we potentially be able to pr ...

When comparing monopolization to monopolistic competition

When comparing monopolization to monopolistic competition in the wireless telecommunications world, what are some good differences to touch on in a short paper?

What is the central limit theorem why does it make the use

What is the Central Limit Theorem? Why does it make the use of the common inferential tools possible even if the raw data is not distributed normally?

In an inquiry into the nature and causes of the wealth of

In an inquiry into the nature and causes of the wealth of nations, Adam Smith listed three reasons for productivity to increase with specialization. What are these three reasons?

What is the difference between a positive economic

What is the difference between a positive economic statement and a normative one

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

Ask Experts for help!!

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

Recent Questions

Ask Business Economics Expert