Reference no: EM1376300
Over the last one year the Four Winds Novelty Corporation has recorded its internet sales (equals monthly output levels) and its monthly total variable costs (TVC) for a particular novelty item as demonstrate in the following table. Sales have grown over this period with relatively few shocks due to uncontrollable weather, political and sporting events. This online retailer carries no inventories; when it receives a pre-paid on-line order from a customer, it simply buys the product from a supplier and ships it out to the customer.
Sales = Output TVC ($)
102,813
176,163
196,121
222,885
226,356
296,416
378,446
450,666
579,696
607,082
624,680
636,133
TVC
201,953
340,608
377,940
432,863
441,714
629,267
867,596
1,103,807
1,701,125
1,917,861
2,195,352
2,479,195
a) Using regression analysis, find an equation that best fits the data to represent the TVC function. (I was able to duplicate the example in the book for the cubic equation, but not the quadratic or linear equations -- I must be doing something wrong in the excel regression analysis, but I don't know what). I also do not completely understand how to interpret the output of the analysis to determine best fit.
b) At what sales/output level will marginal costs (MC) reach a minimum?
c) Estimate the value of TVC for sales/output level 250,000 units, and calculate the 95% confidence interval for your estimate
|
Preparing cad geometry for fea
: Demonstrate suitable accuracy by using a simple hand calculation for the static analysis of the structure. Describe in detail the hand calculations performed to validate the final solution. What is the approximate error between the simplified hand..
|
|
Analyzing regression results
: A multiplicative demand function form: Qd= a*P^b1*Y^b2*Po^b3 is determine using cross sectional data and 224 observations. The regression results were given below:
|
|
Compute point price elasticity of demand
: Run OLS to estimate the inverse demand function(P = f(Q)), determine how much confidence do you have in this estimated equation? Apply algebra to then find the direct demand function
|
|
Estimate the trend in units per year
: A linear trend equation for sales of form Qt = a + bt was estimated using yearly sales information for the period 2000 - 2007. The results of regression are given below:
|
|
Estimate the value of for sales level
: Over the last one year the Four Winds Novelty Corporation has recorded its internet sales and its monthly total variable costs for a particular novelty item as demonstrate in the following table.
|
|
Interpretation for the regression coefficient
: Chez Henri is a restaurant chain that operates in forty different cities. It employed an economist to determine the factors affecting the demand for its sales.
|
|
Computing the four firm concentration ratio
: Industry structure is often measured by computing the Four Firm Concentration Ratio. Assume you have an industry with 20 companies and the CR IS 30 percent.
|
|
Determine the outlook of fictitious economy
: According to the following economic indicators, estimate the outlook of this fictitious economy. Although I know what these indicators mean,
|
|
Define unemployment in the cattle industry
: Determine unemployment in the cattle Industry. Explain a current status of unemployment in the Cattle Industry.
|