Predicted range of demand for sun workstations

Assignment Help Business Economics
Reference no: EM1319225

Q. Sun Computer workstations gathered average monthly sales from its 56 branch once also dealership across the country also estimated the following Demand (sales) for its product: Q = 15000 ô€€€ 2:5P + 150A + 0:3Ppc + 0:35Pm + 0:2Pc
(2:87) (ô€€€2:17) (0:67) (2:5) (2:06) (1:54)
Adjusted R2 = 0:68 also standard error of the whole model, Se = 786: Numbers in the parenthesis are t-statistics. The variables also their assumed values are: Q=Quantity, P=Price of a workstation=7000, A=Advertising expenditures (in thousands)=52, Ppc=Average price of a personal computer=4000, Pm=Average price of a minicomputer=15000, Pc=Average price of a leading competitor's workstation=8000

a. That of the variables are statistically significant at the 5 %level (or %95 confidence level)?

b. Compute the price elasticity also advertising elasticity. Interpret each one.

c. Illustrate what is the predicted range of Demand for Sun workstations with 95 percent (%) confidence level.

d. You have become concerned to the rm's sales are presently lower than the profit maximizing level, given the marginal cost of $1500 per workstation. Control whether your concern is valid also suggests a latest pricing strategy: (rise/reduce/no change) the present price!

 

 

Reference no: EM1319225

Questions Cloud

Confidence interval for the true proportion : A quality control engineer is interested in the mean length of sheet insulation being cut automatically by machine. The desired length of the insulation is 12 feet. It is known that the standard deviation in the cutting length is 0.15 feet.  A sam..
An expression describing total income from tickets plus : Write down an expression describing total income from tickets plus popcorn plus other concessions. Forecast total incomes for regular also special Tuesday-night pricing.
Probability based on geometric distribution : Follow the conventions as described in the general guidelines for writing up Special Problems.
Make job descriptions more marketable : Recommend two changes to make the job descriptions more marketable. Provide examples to support your recommendations. Be sure to provide details of the job descriptions
Predicted range of demand for sun workstations : Compute the price elasticity also advertising elasticity. Interpret each one. Illustrate what is the predicted range of Demand for Sun workstations with 95 percent (%) confidence level.
If labor productivity grew at the rate : If labor productivity grew at the rate of 1.4% per year Illustrate what would average hourly compensation be in the year.
Determining probability that the student is a boy : Provided that the selected student excels in sports, determine the probability that the student is a boy?
Describing the thought process : Determine which candidate would be the "right fit". Support your decision by describing the thought process that lead up to your decision.
Solve the following equation : Solve the following equation

Reviews

Write a Review

Business Economics Questions & Answers

  Constant debt equity ratio maintained

The expansion will cost $60 million and will be financed with $40 million in new debt initially with a constant debt equity ratio maintained thereafter.

  Edison electric companys president

Edison Electric Company's president has been arguing that residential electric rates need to be raised relative to industrial rates.

  Explain natural rate hypothesis are all related

Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.

  Opportunity cost of josephine''s trip to the wedding

What is the opportunity cost of Josephine's trip to the wedding

  Companies establish prices for their products

Some companies establish prices for their products by marking up their full manufacturing cost

  Highly populated areas with target markets

They are all highly populated areas with target markets suitable for your products. One factor is which there several formidable competitors in all of the areas

  Simple model of multiple deposit creation

Using the simple model of multiple deposit creation, state the ultimate impact on M1 from the Fed's sale.

  Economic advantage over those in the us

Opponents of NAFTA point out that pollution is largely a free good in Mexico also that being free to pollute gives industries in Mexico an economic advantage over those in the U.S. also Canada.

  Describe economic contraction and economic expansion

Describe the difference between Economic contraction and Economic expansion

  Per capita disposable income is expected to decrease

Suppose the economy is in a recession and per capita disposable income is expected to decrease by 5%, then what percentage effect on sales would you expect to take place.

  Walras equilibrium with two consumers and two commodities

Walras Equilibrium with two consumers and two commodities, given endowments and preferences for both consumers.

  Each camera requires one lens

Each camera requires one lens. Explain how many cameras will Cam co produce also Illustrate what price will be charged for each.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd