Estimate teh demand equation

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Reference no: EM131355052

Question:

You are the manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months. Following are the average negotiated prices for each month and quantities sold of a basic model (adjusted for various options) over this period of time.

a. Graph this information on a scatter plot. Estimate teh demand equation. what do the regression results indicate about the desirability of discounting the price? Explain

Month	Price	Quantity
January	12500	15
February	12200	17
March	11900	16
April	12000	18
May	11800	20
June	12500	18
July	11700	22
August	12100	15
September	11400	22
October	11400	25
November	11200	24
December	11000	30
January	10800	25
February	10000	28

b. what other factors besides price might be included in this equation? Do you foresee any difficulty in obtaining these additional data or incorporating them in the regression analysis?

Reference no: EM131355052

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