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A chain of health clubs that offers aerobies lasses, racquetball, swimming. free weights, and personal fitness training conducted regression analysis to determine demand for membership.
A chain of health clubs that offers aerobies lasses, racquetball, swimming. free weights, and personal fitness training conducted regression analysis to determine demand for membership. The estimated relationship follows: Qy = 1,000 - 400Py 200Px 8,000A 5,000T 500I Where Qy = Quantity of memberships demanded each year (measured in units) Py = Average membership price (measured in dollars) Px= Average price for Echelon Connect Stationary Bike (measured in dollars) A = Advertising expenditures (measured in thousands of dollars) T= Average number of certified trainers at each location (measured in units) I= Average disposable income (measured in thousands of dollars) Current values for the independent variables are: Py = $725, Px= $600, A = $50,000 T= 3. I = $82,000. a. (4 pt) Determine the demand curve for memberships at the current values for the independent variables. (Note: Be sure to adjust your inputs to reflect how each variable is measured.) b. (4 pt) Calculate demand for memberships at Py = $725
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