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All the numbers after the x's are subscript.
Y=13.20 + 2.10x1 +1.24x2 +0.62x3
where
Y= monthly sales revenue (in $1,000's)x1= monthly advertising expenditure (in $100s)x2= (x1)^2x3= a time trend x3=1 in month 1, x3=2 in month 2 etc.
Suppose that in Month 10 advertising expenditure will be $600. Predict revenue for that month.
A manufacturing company is considering a capacity expansion investment at the cost of $250,000. The expansion would enable the company to produce up to 100,000 more parts and the useful life of the additional capacity is 7 years.
In the name of Simon Kuznets is the concept that the relationship in GDP and inequality is nonlinear. Kuznets hypothesized three phases in economic development.
Cameron is an investor trying to decide among the following three different investment options. Option A:Price today: $1000 One year from today Cameron will receive one of the following payments: $1,250 with a probability of 90%
A Taiwan electronics corporation exports personal computers to the United States Their PC sales over the past five years are following:
suppose that there are 70 firms in operating in the industry. using the MC curve, find out how much output in total is delivered to the market at each price (you only need to consider prices equal to the MC values above). now assume that the marke..
Annual maintenance of the vehicle is estimated to cost $700 per year. The cost of recharging the batteries is estimates at $0.015 per mile. The salvage value of the batteries and the vehicle at the end of 12 years is estimated at $2000. Consider t..
a. Determine the Equivalent Annual Costs of the two alternatives and recommend the economically superior system.b. Determine a Salvage Value for the Beta system such that the Beta system will have an Equivalent Uniform Annual Cost equal to the Alph..
Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable..
If XYZ Corp. can undertake the following projects: Project 1: Required investment: $10 million Expected rate of return: 12% Project 2: Required investment: $2 million Expected rate of return: 15% Project 3: Required investment: $5 million Expected ra..
An agency is having problems with personal phone calls made during working hours. Each minute of a personal call costs the agency $0.50 in wasted wages. The agency decides to hire operators to monitor calls in order to attain the optimal number of..
Estimate the regression equation of wage on educ. Write down formally the regression equation with standard errors underneath within parenthesis.
Q = 123 - 0.5P - 0.25 Pc + .01 Y where Q is the quantity of seasonal passes sold, P is the price for seasonal pass, Pc is the average price for concession items, and Y is average per capital income in Mapleville. what is the profit maximizing pric..
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