Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Chapter 14.2, Problem 2P
Summary Introduction
To classify: The consumers using logistic regression based on explanatory variables.
Introduction: Simulation model is the digital prototype of the physical model that helps to
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A golf club manufacturer is trying to determine how the price of a set of clubs affects the demand for clubs. The file P10_50.xlsx contains the price of a set of clubs and the monthly sales.
Assume the only factor influencing monthly sales is price. Fit the following three curves to these data: linear (Y = a + bX), exponential (Y = abX), and multiplicative (Y = aXb). Which equation fits the data best?
Interpret your best-fitting equation.
Using the best-fitting equation, predict sales during a month in which the price is $470.
File data:
Price
Demand
$400
20,000
$420
19,000
$440
17,000
$460
16,000
$500
14,000
$380
22,000
$290
31,000
$340
26,000
$220
41,000
$700
6,000
Below you are given a partial computer output from a multiple regression analysis based on a sample of 16 observations.
Coefficients
Standard Error
Constant
12.924
4.425
x1
-3.682
2.630
x2
45.216
12.560
Analysis of Variance
Source ofVariation
Degrees ofFreedom
Sum ofSquares
MeanSquare
F
Regression
4853
2426.5
Error
485.3
The t value obtained from the table which is used to test an individual parameter at the 1% level is
a. 2.977.
b. 2.921.
c. 3.012.
d. 2.650.
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