The sales manager of a large automotive parts distributor

Assignment Help Microeconomics

Reference no: EM13706111

can you please send me the excel file for the question you posted and answer to? I would like to learn from the work

the question was posted October 15, 2014.

Suppose that the sales manager of a large automotive parts distributor wants to estimates as early as April the total annual sales of a region. On the basis of regional sales, the total sales for the company can also be estimated. If, based on past experience, it is found that the April estimates of annual sales are reasonable accurate, then in future years the April forecast could be used to revise production schedules and maintain the correct inventory at the retail outlets.
Several factors appear to be related to sales, including the number of retail outlets in the region stocking the company's parts, the number of automobiles in the region registered as of April 1, and the total personal income for the first quarter of the year. Five independent variables were finally selected as being the most important (according to the sales manager). Then the data were gathered for a recent year. The total annual sales for that year for each region were also recorded. Note in the Exam Data One that for region 1 there were 1,739 retail outlets stocking the company's automotive parts, there were 9,270,000 registered automobiles in the region as of April 1 and so on. The sales for that year were $37,702,000. What percent of the variation is explained by the regression equation?
Please check the Exam Data One on Moodle, and answer the following questions:
1. What percent of the variation is explained by the regression equation?
2. Compute the elasticity for each variable. On this basis, discuss the relative impact that each variable has on demand. (For computing elasticity, you can use the first row of the data from Exam Data One. Which are: Number of retail outlets=1739, Number of automobiles registered(Millions)=9.27, Personal income($billions)=85.4, Average age of automobiles(years)=3.5, Number of supervisors=9
3. Conduct a t-test for the statistical significance of each variable. Discuss the results of the t-tests in lights of the policy implications.

Reference no: EM13706111

Questions Cloud

How the starting & stopping of 3-phase motor from more than : How the Starting & Stopping of 3-Phase Motor from more than One Place Power & Control diagrams work ? include a Diagram with the answer

Write a report for the outlining the business operation : Write a well presented report for the above outlining the business operation and provide an alternative to the above suggestion (of ATM-like machines) to improve delivery options.

Wisconsin is an important milk-producing state : Wisconsin is an important milk-producing state. Some people might argue that because of transportation costs, the cost of milk increases with the distance of markets from Wisconsin. Suppose the milk prices in eight cities are as follows.

A coal mine operates with a production function q = l/2 : A coal mine operates with a production function Q = L/2, where L is the quantity of labor it employs and Q is total output. The firm is a price taker in the output market, where the price is currently 32. The firm is a monopsonist in the labor mar..

The sales manager of a large automotive parts distributor : Suppose that the sales manager of a large automotive parts distributor wants to estimates as early as April the total annual sales of a region. On the basis of regional sales, the total sales for the company can also be estimated. If, based on ..

How the common law and statutory rules of interpretation : Explain how the common law and statutory rules of interpretation could be applied to the following situations - Winnie is caught by a security guard as she is licking white aspirin powder. According to the Macquarie Dictionary, aspirin is a drug. W..

Evaluate the impact of making these changes using criteria : Evaluate the impact of making these changes using criteria other than just the time to complete the project. Do you think it would be in Nokia's best interest to try to make these changes in how they run this and future cell phone design projec..

Calculate the short-run average and marginal cost function : What is the long-run equilibrium price (P*)? The total industry output (Q*)? The output of each ?rm (q*)? The number of ?rms? The pro?ts of each ?rm? c. The short-run total cost function associated with each ?rm's long-run equilibrium output is g..

Country c would be willing to export the product to a for $1 : Suppose that country C would be willing to export the product to A for $15 per unitwhile country B, the low-cost world producer, is willing to export at a price of $10. Similarly, let the lines (SB + tariff) and (SC + tariff) denote the domestic p..

User Account

All Pages