Your company just became international by offering its products in both the United States and Canada. Experts in your analyticsdepartment believe that tastes for your product differ in those two countries, and have carefully collected data on prices and quantitydemanded in both countries. They then present you with the results of two regressions, one for each country, as follows:Log Price regressed on Log Quantity (United States):StandardCoefficientsErrort StatP-valueLower 95%Upper 95 %1.67605E-Intercept52.75573994 10.810513034.8804036331.4870828374.023970506| Log Quantity-5.382266173 1.170584108 -4.597932039 6.15253E-06 -7.685279168 -3.079253177Log Price regressed on Log Quantity (Canada):StandardErrorCoefficients22.8707593 10.64507785-2.095788278 | 1.152727409 -1.818112644 0.069981782t Stat2.148482109Upper 95%43.8139384P-valueLower 95%InterceptLog Quantity0.0324256031.9275802-4.3636699160.17209336Assume you have adequate statistical significance for both inverse demand curves, and suppose your marginal costs are $20. What isthe profit maximizing price you should charge in each country?Instruction: Round your answers to the nearest penny.United States: $Canada: $

Regression analysis is a set of statistical techniques used to model the relationship between a…

Your company just became international by offering its products in both the United States and Canada. Experts in your analytics department believe that tastes for your product differ in those two countries, and have carefully collected data on prices and quantity demanded in both countries. They then present you with the results of two regressions, one for each country, as follows: Log Price regressed on Log Quantity (United States): Standard Error Coefficients t Stat P-value Lower 95% Upper 95% 1.67605E- 52.75573994 10.81051303 -5.382266173 1.170584108 -4.597932039 6.15253E-06 -7.685279168 -3.079253177 Intercept 4.88040363 31.48708283 74.0239705 06 Log Quantity Log Price regressed on Log Quantity (Canada): Standard Coefficients Error t Stat P-value Lower 95% Upper 95% Intercept Log Quantity 22.8707593 10.64507785 2.148482109 0.032425603 1.9275802 -4.363669916 43.8139384 -2.095788278 | 1.152727409 -1.818112644 0.069981782 0.17209336 Assume you have adequate statistical significance for both inverse demand curves, and suppose your marginal costs are $20. What is the profit maximizing price you should charge in each country? Instruction: Round your answers to the nearest penny. United States: $ Canada: $

Your company just became international by offering its products in both the United States and Canada. Experts in your analytics department believe that tastes for your product differ in those two countries, and have carefully collected data on prices and quantity demanded in both countries. They then present you with the results of two regressions, one for each country, as follows: Log Price regressed on Log Quantity (United States): Standard Error Coefficients t Stat P-value Lower 95% Upper 95% 1.67605E- 52.75573994 10.81051303 -5.382266173 1.170584108 -4.597932039 6.15253E-06 -7.685279168 -3.079253177 Intercept 4.88040363 31.48708283 74.0239705 06 Log Quantity Log Price regressed on Log Quantity (Canada): Standard Coefficients Error t Stat P-value Lower 95% Upper 95% Intercept Log Quantity 22.8707593 10.64507785 2.148482109 0.032425603 1.9275802 -4.363669916 43.8139384 -2.095788278 | 1.152727409 -1.818112644 0.069981782 0.17209336 Assume you have adequate statistical significance for both inverse demand curves, and suppose your marginal costs are $20. What is the profit maximizing price you should charge in each country? Instruction: Round your answers to the nearest penny. United States: $ Canada: $

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:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 3E

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