MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
9th Edition
ISBN: 2810022149537
Author: Baye
Publisher: MCG
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Chapter 3, Problem 12PAA
To determine
Log-Log regression model and an impact of a 3 percent decline in global income on overall demand for the product.
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QUESTION 17
I am trying to figure out how to measure an athlete's productivity. So, I have
run a linear regression of a NBA player's salary (dependent variable) on a
player's statistics including average points, assists, rebounds per game, and
turnovers per game (the independent variables).
The final model is: Salary = 1,000,000 * Points per game + 50,000 * Assists
per game + 20,000 * Rebounds per game - 30,000 * Turnovers per game
%3!
Last year, Lebron James averaged 25 points per game, 8 assists per game, 8
rebounds per game and 4 turnovers per game. What is Lebron's predicted
salary?
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
Consider the following estimated regression model relating annual salary to years of education and work experience. Estimated Salary=11,681.31+3418.97(Education)+1194.78(Experience) Suppose two employees at the company have been working there for five years. One has a bachelor's degree (8 years of education) and one has a master's degree (10 years of education). How much more money would we expect the employee with a master's degree to make?
Chapter 3 Solutions
MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
Ch. 3 - Prob. 1CACQCh. 3 - The demand curve for a product is given by...Ch. 3 - Prob. 3CACQCh. 3 - Suppose the own price elasticity of demand for...Ch. 3 - Suppose the cross-price elasticity of demand...Ch. 3 - You are the manager of a firm that receives...Ch. 3 - A Quant jock from your firm used a linear demand...Ch. 3 - Prob. 8CACQCh. 3 - Prob. 9CACQCh. 3 - Prob. 10CACQ
Ch. 3 - Prob. 11PAACh. 3 - Prob. 12PAACh. 3 - For the first time in two years, Big G (the cereal...Ch. 3 - Prob. 14PAACh. 3 - You are a division manager at Toyota. If your...Ch. 3 - You are a manager in charge of monitoring cash...Ch. 3 - As newly appointed Energy Czar. your goal is to...Ch. 3 - As the owner of Barneys Broilers—a fast-food...Ch. 3 - Prob. 19PAACh. 3 - With milk sales sagging of late. The Milk...Ch. 3 - Prob. 21PAACh. 3 - Prob. 22PAACh. 3 - Prob. 23PAA
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- A manufacturer is developing a facility plan to provide production capacity for its factory. The amount of capacity required in the future depends on the number of products demanded by its customers. The data below reflect past sales of its products: Year Annual Sales (number of products) Year Annual Sales (number of products) 1 490 5 461 2 487 6 475 3 492 7 472 4 478 8 458 Use simple linear regression to forecast annual demand for the products for each of the next three (3) years, by using the tabular method to: derive the values for the intercept and slope derive the linear equation plot the linear regression line develop a forecast for the firm’s annual sales for each of the next three yearsarrow_forwardSetting: U.S. Auto manufacturers are trying to develop a multivariate function with which to estimate the demand for their gas-electric hybrid compact cars. Here is one that Motors General developed for its Jolt: Qj = 65000 – 20Pj + 20Pf + 35Pt – 5Pb + 0.2Tc + 0.05Y + 10Mg + 0.04A Where Qj = the number of Jolts demanded per week. Pj = the price of each new Jolt (in $). Pf = the price of each new Ford gas-electric hybrid (in $). Pt = the price of each new Toyota gas-electric hybrid (in $). Pb = the price of replacement batteries for the Jolt (in $). Tc = the amount of tax credit incentive offered with the purchase of a new hybrid (in $). Y = average weekly disposable income of a typical Jolt purchaser (in $). Mg = the miles per gallon of gas rating of the Jolt (in miles per gallon). A = average weekly Jolt advertising expenditure (in $). 6 If all variables remain unchanged except that the price of the Toyota hybrid (Pt) decreases by $500, then the demand for Jolts will: 7…arrow_forwardThe following table shows worldwide sales of a certain type of cell phone and their average selling prices in 2012 and 2013. Year 2012 2013 Selling Price ($) 395 325 Sales (millions) 741 1,133 (a) Use the data to obtain a linear demand function for this type of cell phone. (Let p be the price, and let q be the demand). q(p) = Use your demand equation to predict sales if the price is lowered to $255. million phones (b) Fill in the blank. For every $1 increase in price, sales of this type of cell phone decrease by million units.arrow_forward
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