User Account

All Pages

What is the independent variable in this sales experiment

Assignment Help Accounting Basics
Reference no: EM132751859

Question - The manager of a men's clothing catalog measured the market's response to a $6 increase in the usual price of his company's oxford shirts by conducting a sales experiment. An A-B split was used to divide the company's 80,000-customer mailing list into two groups. Customers in the control group were sent catalogs listing oxford shirts at their usual price of $30. Customers in the test group were sent catalogs listing the price of oxford shirts at $36. During the test period, customers in the control group purchased 650 oxford shirts, and customers in the test group purchased 507 oxford shirts.

Required -

(a) What is the independent variable in this sales experiment? What is the dependent variable in this sales experiment?

(b) What is the percent change in price in this experiment? Show your work.

(c) What is price elasticity indicated by the results of this experiment. Show your work.

Reference no: EM132751859

Questions Cloud

Prepare general journal entries to record the events : The estimated useful life of the machinery is 4 years with an estimated residual value of $8,000. Prepare general journal entries to record the events
Distinguish a corporation from a partnership : Cite some advantages of a corporation over a partnership form of organization. Explain each fully. Distinguish a corporation from a partnership.
Describe the learning features you would include in program : Briefly describe the learning features you would include in the program and discuss why you recommend including those features.
What are advantages and disadvantages to the corporation : When the subscriber defaults, what are the advantages and disadvantages to the corporation? When are shares issued at par? Premium? Discount? Stated value?
What is the independent variable in this sales experiment : Customers in the test group were sent catalogs listing the price of oxford shirts at $36. What is the independent variable in this sales experiment
What are rules in the recording of shares of stocks issued : What are the rules in the recording of shares of stocks issued for cash? Compare outright sale of Share Capital and subscription of Share Capital.
What is the impact of having minimum standards in workplace : What is the impact of having minimum standards in the workplace? Which law ensures that every workplace runs on those minimums? Give some examples of conditions
What are the two methods of accounting for the authorization : What are the two methods of accounting for the authorization and issuance of Share Capital? What is the purpose of memorandum entry
What is Comp Inc profit margin : The Intelinet Corporation and Comp. Inc. have assets of P100,000 each and a return on common equity of 17%. What is Comp Inc profit margin

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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