Levels Tought:
University
Teaching Since: | Apr 2017 |
Last Sign in: | 347 Weeks Ago, 2 Days Ago |
Questions Answered: | 9562 |
Tutorials Posted: | 9559 |
bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Assignment 1: Demand Estimation
Due Week 3 and worth 200 points
Imagine that you work for the maker of a leading brand of low-calorie microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April.
For a refresher on independent and dependent variables, please go to Sophia’s Website and review the Independent and Dependent Variables tutorial, located athttp://www.sophia.org/tutorials/independent-and-dependent-variables--3.
Â
Regression Equation for Assignment 1
Â
The following is a regression equation for the demand for low-calorie microwavable food. Standard errors are in parentheses.
QÂ Â Â Â Â Â Â Â =Â Â Â Â Â Â Â Â Â - 5200 - 42P + 20PXÂ + 5.2I + .20A + .25M
                       (2.002) (17.5) (6.2)   (2.5)  (0.09)   (0.21)
                       R2 = 0.55      n = 26            F = 4.88
Â
Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:
Assume the following values for the independent variables:
QÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â = Â Â Â Â Â Â Â Â Quantity sold per month
P (in cents)Â Â = Â Â Â Â Â Â Â Â Price of the product = 500
PX (in cents) =         Price of leading competitor’s product = 600
I (in dollars) Â = Â Â Â Â Â Â Â Â Per capita income of the standard metropolitan statistical
 area (SMSA) in which the supermarkets are located = 5,500
A (in dollars)Â =Â Â Â Â Â Â Â Â Â Monthly advertising expenditures = 10,000
M Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â =Â Â Â Â Â Â Â Â Â Number of microwave ovens sold in the SMSA in which the
                                 supermarkets are located = 5,00
Note:Â Your professor will provide you with the equation and data necessary for you to complete this assignment. You will find this information attached to Assignment 1 within the course shell.
Write a four to six (4-6) page paper in which you:
Your assignment must follow these formatting requirements:
The specific course learning outcomes associated with this assignment are:
Click here to view the grading rubric.
Â
-----------