Reference no: EM132196706

1. In which of the following situations would specific performance be an appropriate remedy? Discuss fully.  

a. Thompson contracts to sell her house and lot to Cousteau. Then, on finding another buyer willing to pay a higher purchase price, she refuses to deed the property to Cousteau.

b. Amy contracts to sing and dance in Fred's nightclub for one month, beginning May 1. She then refuses to perform.

2. Which one of the following statements is TRUE if you use too many periods for moving average analysis?

The forecasted demand becomes so smooth that you lose the seasonal pattern.

You failed to use historical data to forecast.

The forecasted demand curve becomes so fluctuated and you could not use it to forecast precisely.

The more the better. Forecasting with lots of periods always outperforms forecasting with short periods.

3. Suppose a grocery store manager uses the regression approach to forecast Coke’s sales. He sets ‘Coke sale’ as the dependent variable, and ‘Coke Price’ and ‘Pepsi Price’ as the independent variables as follows:

Coke Sales = 

He has the weekly data on Coke sales, Coke Price and Pepsi Price of last year, and the regression result proves that this linear model fits the data very well. The results are as follows: 

Suppose the store manager decides to increase Coke’s price from $2 per unit to $2.5 per unit, and reduces Pepsi price from $2 to $1.8. The overall effect on Coke would be that Coke sales would _________

increase 126 units

decrease 126 units

decrease 117 units

increase 117 units

decrease 9 units.