Question
. A manufacturer of computer workstations gathered average monthly sales figures from its 56 branch offices and dealerships across the country and estimated the following
. A manufacturer of computer workstations gathered average monthly sales figures from its 56 branch offices and dealerships across the country and estimated the following demand for its product:
Q = 15,000 - 2.8 P + 150 A + 0.3 Ppc + 0.35 Pm + 0.2 Pc
(4234)(1.29)(175)(0.12)(0.17)(0.13)
R^2 = 0.68F= 21.25
The variables and their estimated values are:
Q = Quantity
P = Price of the basket = $7000
A = Advertising expenditures = $52000
Ppc = Average price of personal computer = $4000
Pm = Average price of minicomputer = $15,000
Pc = Average price of a leading competitor's workstation = $8,000
() the number in brackets is the standard error of estimation SEE
The t-test is = coefficient of variable/SEE
Q= +15000 -2.8P + 150A + 0.3Ppc + 0.35m + 0.2Pc
= 15000 - 2.8(7000) + 150(52000) + 0.3(4000) + 0.35(15000) + 0.2(8000)
Q=
a.Compute the elasticity of each variable.
Can you give me in detail how to substitute the calculator for the result?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started