Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What conditions would justify the assumption of a constant contribution margin per customer? Do you think those conditions are likely to hold here? To support

What conditions would justify the assumption of a constant contribution margin per customer? Do you think those conditions are likely to hold here? To support your conclusions, show a scatter plot of the sample data, and then use the sample data to run a regression of purchase costs (dependent variable) on purchase revenues (independent variable). [Hint: What is the meaning of the intercept term of your regression results?]

Day Customers:

Purchase Revenue Purchase Cost
36.14 26.58
38.33 26.07
43.54 29.6
26.17 20.79
42.55 28.93
33.58 21.84
27.85 19.94
33.61 20.85
34.03 25.14
37.57 24.54
35.26 25.98
44.08 30.98
35.81 25.35
47.29 31.16
48.66 35.09
45.11 33.68
40.33 28.42
46.85 34.86
34.12 24.2
34.85 20.7
30.07 23.45
29.79 21.26
36.74 24.98
35.06 26.84
28.89 20.64
24.38 13.58
30.4 22.67
40.94 29.84
41.56 28.26
30.43 22.69

Evening Customers:

Purchase Revenue Purchase Cost
43.01 32.25
38.25 25.01
38.63 23.27
39.17 28.64
34.51 22.47
37.02 25.18
36.87 25.07
37.64 26.59
37.93 22.79
35.88 27.4
39.59 26.92
41.81 26.43
35.27 23.98
38.39 27.11
56.01 35.09
40.92 29.83
33.83 21.01
41.24 29.04
29.99 19.39
50.61 36.42
36.21 26.62
47.07 30.01
36.85 28.06
40.1 25.26
39.26 25.69
40.89 29.81
33.05 23.48
33.85 20.02
27.24 20.52
38.08 24.9

All Customers:

Purchase Revenue Purchase Cost
36.14 26.58
38.33 26.07
43.54 29.6
26.17 20.79
42.55 28.93
33.58 21.84
27.85 19.94
33.61 20.85
34.03 25.14
37.57 24.54
35.26 25.98
44.08 30.98
35.81 25.35
47.29 31.16
48.66 35.09
45.11 33.68
40.33 28.42
46.85 34.86
34.12 24.2
34.85 20.7
30.07 23.45
29.79 21.26
36.74 24.98
35.06 26.84
28.89 20.64
24.38 13.58
30.4 22.67
40.94 29.84
41.56 28.26
30.43 22.69
43.01 32.25
38.25 25.01
38.63 23.27
39.17 28.64
34.51 22.47
37.02 25.18
36.87 25.07
37.64 26.59
37.93 22.79
35.88 27.4
39.59 26.92
41.81 26.43
35.27 23.98
38.39 27.11
56.01 35.09
40.92 29.83
33.83 21.01
41.24 29.04
29.99 19.39
50.61 36.42
36.21 26.62
47.07 30.01
36.85 28.06
40.1 25.26
39.26 25.69
40.89 29.81
33.05 23.48
33.85 20.02
27.24 20.52
38.08 24.9

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Calculus Early Transcendentals

Authors: James Stewart

7th edition

538497904, 978-0538497909

More Books

Students also viewed these Mathematics questions

Question

1. Show enthusiasm for the subject you teach.

Answered: 1 week ago