Reference no: EM136303
Q. Harvey Enterprises, Inc., has hired you to analyze demand for Product Z. A statistical analysis of demand for the past 30 months shows (standard errors in parentheses):
QZ = 500 - 8PZ + 5PX + 0.05A + 0.025Y
(350) (2.5) (2) (0.03) (0.011)
R2 = 0.93
Standard Error of the Estimate = 20
Here, QZ is market demand for Product Z, PZ is the price of Z in dollars, A is dollars of advertising expenditures, PX is the average price in dollars of another (unidentified) product, and Y is dollars of household income. At present, the price of Z is $500, PX is $600, advertising expenditures are $10,000, and average per capita income is $40,000.
Which of the variables above is NOT statistically significant at the 0.05 level?
|
Consumers lifetime budget constraint
: Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
|
|
Determine about consumer demand
: What can you determine about consumer demand for your product from this information.
|
|
Amount of income tax and the average tax rate
: A flat tax plan allows individuals to deduct a standard allowance of $10,000 from their wages. Assume that the flat tax rate is 12%. Calculate the amount of income tax and the average tax rate if you were earning.
|
|
Monopolistic firm control
: Quantity, whole revenue and profit when company charges different price in each market and exploits its total profit.
|
|
Analyze demand of product
: Which of the variables above is NOT statistically significant at the 0.05 level.
|
|
Profit-maximizing strategy to the board of directors
: Board of directors has directed you to choose an output level that maximizes the firm's profit. You have an incentive to maximize profits because your job and salary depend on the profit performance of this company.
|
|
Increased international trade
: Suppose that increased international trade makes product markets more competitivein U.S., would we expect to observe an upward slope on the WS curve or the PS curve
|
|
Impact of rational self-interest
: Briefly discuss the impact of rational self-interest on each of the following decisions. Whether to attend college full time or enter the workforce full time.
|
|
What is the problem and what action would be recommended
: The client tells nurse that he does not understand what that means. How would nurse explain this in terms the client would understand.
|