28.08.2019 п»їA producer of computer workstations gathered average

monthly sales statistics from its 56 branch office buildings and

dealers across the country and estimated the next

demand for their product:

Queen = +15, 000 вЂ“ 2 . 80P + 150A + 0. 3Ppc + 0. 35Pm + 0. 2

Personal computer

(5, 234) (1. 29) (175) (0. 12) (0. 17) (0. 13)

R2 = 0. 68 SEE = 786 F sama dengan 21. 25

The factors and their presumed value happen to be

Q = Quantity

G = Cost of fundamental model sama dengan 7, 1000

A = Advertising expenses (in thousands) = 52

Ppc sama dengan Average cost of a personal computer = 5, 000

Pm = Average price of mini pc = 15, 000

Laptop or computer = Typical price of your leading competitor's workstation sama dengan 8, 500

a. Compute the elasticities for each varying. On this simple, discuss the ralative effects that each adjustable has on the

demand. What implications do these outcomes have intended for the business marketing and charges policies?

m. Conduct a t-test for the record significanse of each and every variable. Every time, state if the one-tail or perhaps two-tail evaluation on the effects? Discuss the results from the t-tests because of the coverage implications stated.

c. C. Suppose a manager analyzing these result suggests

that interest rates as well as the performance of the computer

(typically measured in millions of instructions per second, or MIPS) are important determinants of the demand for

workstations and must as a result be included in the study. How would you respond to this suggestion? Elaborate

Solution

a. Queen = 15000 вЂ“ installment payments on your 80(7000) + 150(52) & 0. 3(4000) +

0. 35(15000) + 0. 2(8000)

= 15000 вЂ“ 19600 + 7800 + twelve hundred + 5250 + 1600

= 11250 monthly

When the Q = 11250

Firmness P = -2. 70 (7000/11250)

= -1. 742

Elasticity A = 150 (52/11250)

sama dengan 0. 693

Elasticity Pay per click = zero. 3 (4000/11250)

= zero. 107

Elasticity Pm sama dengan 0. thirty five (15000/11250)

sama dengan 0. 467

Elasticity Computer = zero. 2 (8000/11250)

= zero. 142

Using this answer, with regard to the workstation is price elastic. The reduced elasticity pourcentage of zero. 107 to get elasticity Pay-per-click, and firmness Pc is usually 0. 142. The company must focus much less on their advertising...