Evaluate the regression, Managerial Economics

Assignment Help:

Question:

(a) The regression results for the quantity demanded of good X is given by

ln QX = 1220 - 9.5 ln PX - 2.21 ln PY + 1.01 ln M
t values (5.3)  (-5.12)      (-2.15)           (5.41)

Adjusted R2 = 0.96 F statistics = 160.20 P value = 0.001

Where QX is the quantity demanded of X, PX is the price of X, PY is the price of Y and M is the consumer income. Evaluate the above regression and discuss how these results may be useful to a manager.

(b) The Wall Street Journal reports that the prices of PC components are expected to fall by 5 to 8 percent over the next six months. With the aid of diagrams, explain the likely impact and what the implications are for a manager in the following cases:

(i) Case1: If you are the manager of a small firm that manufactures PCs.

(ii) Case 2: If you are the manager of a small software company.


Related Discussions:- Evaluate the regression

Calculate the marginal product of labor, The production function of a small...

The production function of a small shop that frames pictures is Q = 5 √ LK where Q is the number of pictures framed per day, L is labor hours and K is the machine hours.

Explain the shut down point, Q. Explain the Shut down point? ShutdownP...

Q. Explain the Shut down point? ShutdownPoint: With MR = MC, firm attains equilibrium at point E where it produces OM amount of the output. To produce this output, firm incur

Arguments for uneven distribution of income and wealth, Arguments for Uneve...

Arguments for Uneven Distribution of Income and Wealth The basic economic argument to justify large income inequality was the assumption that high personal and corporate income

Organization for economic development (oecd), Organization for Economic...

Organization for Economic Development (OECD) An international organization found in Paris France in 1961, to act as a worldwide forum to stimulate world trade and

Define aunifying and omniscient theme, Define Aunifying and omniscient them...

Define Aunifying and omniscient theme Aunifying and omniscient theme found in managerial economics is the attempt to achieve optimal results from business decisions whereas tak

Determine the scope of managerial economics, Determine The scope of manager...

Determine The scope of managerial economics The scope of managerial economics involves following subjects: 1.  Theory of demand 2.  Theory of production 3.  Theory of

Cheap labour - reason for protection, Cheap Labour   It is often argu...

Cheap Labour   It is often argued that the economy must be protected from imports which are produced with cheap, or 'sweated", labour.  Some people argue that buying foreign

Where does the firm operate, Where does the firm Operate? The firm wil...

Where does the firm Operate? The firm will avoid stages I, II and III and will instead choose stage II.  It will avoid stage I because this shall involve using the fixed facto

determine the wage rate , Northern Lumber operates a large lumber-processi...

Northern Lumber operates a large lumber-processing mill in a small town in Washington State.  It is one of the larger lumber producers in the region and has some market power in th

State the specific time of demand, State the Specific Time of demand De...

State the Specific Time of demand Demand should be assigned specific time. For instance, it is an incomplete proclamation to state that demand of air conditioners is 4,000 at t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd