Reference no: EM13210004
Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by using the following linear specification: Q = a + bP + cM + dPR From Regression results: Q = 425120.0 - 37260.6 +1.49 - 1456.0 Where Q is the number of cans of tennis balls sold quarterly, P is the wholesale price Wilpen charges for a can of tennis balls, M is the consumers' average household income, and PR is the average price of tennis rackets.
The regression results are as follows:
Dependent Variable: Q R-Square F-Ratio P-Value on F Observations: 20 0.8435 28.75 0.001 Parameter Standard Variable Estimate Error T-Ratio P-Value Intercept 425120.0 220300.0 1.93 0.0716 P -37260.6 12587 -22.96 0.0093 M 1.49 0.3651 4.08 0.0009 PR -1456.0 460.75 -3.16 0.0060
a. Discuss the statistical significance of the parameter estimates â, b, ?, and d using the p-values. Are the signs of b, ? and d consistent with the theory of demand?
b. What is the estimated number of cans of tennis balls demanded?
c. At the values of P, Mp and PR given, what are the estimated values of the price (Ê), income (ÊM), and cross-price elasticities (ÊXR) of demand?
d. What will happen, in percentage terms, to the number of cans of tennis balls demanded if the price of tennis balls decreases 15 percent?
e. What will happen, in percentage terms, to the number of cans of tennis balls demanded if the average household income increases by 20 percent?
|
Find the values of condition flags
: Find the values of condition flags N, Z, V, and C in the CCR register after the executive of each of the following instructions, given that [A] = $50 and the condition flags are N =0, Z =1, V =0, and C =1. a) suba #40 b) tsta c) adda #$50 d) lsra ..
|
|
Describe three of your favorite features of word
: Each feature you describe should be a two to three sentence paragraph. b. The letter should be free of spelling and grammar errors.
|
|
How to increase the weekly allowance per week
: Sally, a college student at UConn, earns $10 per hour working at Friendly's. Her parents also give her $100 per week to help with expenses. Lately, Sally's parents have been concerned about her grades and want her to spend less time at work and mo..
|
|
Explain a student cleans their dorm room the entropy
: When a student cleans their dorm room, the entropy of the system must decrease. How is this NOT a violation of the second law of thermodynamics?
|
|
What is estimated number of cans of tennis balls demanded
: Dependent Variable: Q R-Square F-Ratio P-Value on F Observations: 20 0.8435 28.75 0.001 Parameter Standard Variable Estimate Error T-Ratio P-Value Intercept 425120.0 220300.0 1.93 0.0716 P -37260.6 12587 -22.96 0.0093 M 1.49 0.3651 4.08 0.0009 PR ..
|
|
Find what is the growth rate of real gdp per capita
: If the growth rate of real GDP were to continue at the same rate you have calculated, how many years would it take for real GDP to double Assume the population in 2009 was 100 and 200 in 2010. Calculate real GDP per capita in each of these years.
|
|
Write a conversion program that prompts the user
: Write a conversion program that prompts the user from which unit she/he wants to convert (gallon to liters, miles to Km, celsius to fahrenheit) . You should write three different methods.
|
|
Explain what is the problem of attempting an adols
: what is the problem of attempting an Adols condensation using different aldehydes
|
|
What are some uses for wrapper classes
: Wrapper classes are classes that surround primitive types with additional functionality. What are some uses for wrapper classes? Show some examples of how they could be used.
|