Indicate the desirability of discounting the price

Assignment Help Microeconomics

Reference no: EM13184464

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 the 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: EM13184464

Questions Cloud

Determine the poverty rate : Between 2009 and 2010, the poverty rate increased for non-Hispanic Whites (from 9.4 percent to 9.9 percent), for Blacks (from 25.8 percent to 27.4 percent), and for Hispanics (from 25.3 percent to 26.6 percent). For Asians, the 2010 poverty rate (..

Compute the radius of an iridium atom : Calculate the radius of an iridium atom, given that Ir has an FCC crystal structure, a density of 22.4 g/cm3,

Demonstrated its social and environmental accountability : Discuss the way in which BHP Billiton has demonstrated its social and environmental accountability and discuss the stance and initiatives of the Australian accounting profession on corporate social responsibility

Compute the van''t hoff factor : Calculate the van't Hoff factor (i) for this solution. 2. Calculate the vapor pressure at 25 ?C of an aqueous solution that is 5.80% NaCl by mass.

Indicate the desirability of discounting the price : 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 ..

State down the integral you would need to evaluate : The following questions pertain to the magnitude of the x-component of the speed(absolute value of the velocity) cx=|vx| of atoms in a gas, whose probability distriubution has the form P(cx)= ae^-bc2/x. A. Write down the integral you would need to ..

Compute the beginning balance in the cash account : Compute the beginning balance in the cash account and how much cash was provided by (or used in) operating activities?

Describe the u.s. market for wine under free trade : Assuming that American imports of wine are a small part of total world wine production, draw a graph for the U.S. market for wine under free trade. b.) Now suppose that a tariff is place on the importation of wine into the United States to protec..

Explain what is the hamiltonian of the particle : Consider a particle that is confined by a one-dimensional quadratic (harmonic) potential of the form U9x)=Ax^2 (where A is a positive real number). A. What is the Hamiltonian of the particle(expressed as a function of velocity v and x)?

User Account

All Pages