Evaluate the regression, Managerial Economics

Assignment Help:

Question:

(a) The regression results for the quantity demanded of good X is given by

ln QX = 1220 - 9.5 ln PX - 2.21 ln PY + 1.01 ln M
t values (5.3)  (-5.12)      (-2.15)           (5.41)

Adjusted R2 = 0.96 F statistics = 160.20 P value = 0.001

Where QX is the quantity demanded of X, PX is the price of X, PY is the price of Y and M is the consumer income. Evaluate the above regression and discuss how these results may be useful to a manager.

(b) The Wall Street Journal reports that the prices of PC components are expected to fall by 5 to 8 percent over the next six months. With the aid of diagrams, explain the likely impact and what the implications are for a manager in the following cases:

(i) Case1: If you are the manager of a small firm that manufactures PCs.

(ii) Case 2: If you are the manager of a small software company.


Related Discussions:- Evaluate the regression

Price elasticity at terminal points, Price Elasticity at Terminal Points ...

Price Elasticity at Terminal Points The price elasticity at terminal point N equals 0 means that at point N, e = 0. At terminal point M, although, price-elasticity is undefined

State the fixed factor of production, State the Fixed factor of production ...

State the Fixed factor of production Input level of a fixed factor can't be varied in the short run. Capital falls under the category of fixed factor. Capital alludes to resour

State the relevant economic quantities, State the relevant economic quantit...

State the relevant economic quantities Managerial economics helps the management in predicting numerous economic quantities like profit, cost, capital, demand, price, productio

Can identity economics explain some patterns , Can identity economics expla...

Can identity economics explain some patterns observed in the Australian economy

Show the isoquant touching axis, Q. Show the Isoquant touching axis? I...

Q. Show the Isoquant touching axis? Isoquants do not intersect: By definition isoquants such as indifference curves, can never cut each other. If they cut each other it will

Homework, What market type does the company you work for operate under? Wha...

What market type does the company you work for operate under? What makes you think this? Do you think that this is the right market type for your company to operate in? Explain you

Theory of demand of managerial economics, Theory of Demand of managerial ec...

Theory of Demand of managerial economics According to Siegelman andSpencer "A business firm is an economic organisation that transforms productivity sources into goods which

Central bank functions-controller of credit, Controller of Credit The p...

Controller of Credit The principles of credit control by the central bank were discovered and enunciated after the publication of Bagehot Lombard street in 1873. Even after 187

What is right angled isoquant, Q. What is Right Angled Isoquant? This p...

Q. What is Right Angled Isoquant? This presumes zero substitutability of factors of production. There is just one method of producing any one commodity. In this case, isoquant

New york offers the payout, Lots of states have scratch offs with various d...

Lots of states have scratch offs with various different monetary payoffs. For example, the "$500 a week for life" in New York offers the payout and odds structure noted below.

Write Your Message!

Captcha
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