Case Study - Economics - Maryem Naili A Lawson-Hellu...

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Maryem Naili A. Lawson-Hellu Managerial Economics Dr. Lahrach Case Study: Time Warner Memo 1: Revenue from STARZ The data that we are going to be using in the first memo: The main questions concerning this memo are: “I am particularly interested (1) in whether lowering the price will yield higher revenues, and (2) in an estimate of the maximum monthly revenues we can achieve through this channel.” Interpretation of Excel data: The R square is equal to 78,44%, which means that it is about 78,44% of the variability in quantity demand for the firm. Means that R square is high meaning the the model fit the data. The price coefficient indicates that if the quantity increase by one unit, the price will decrease by 0,1075. Also, if the price is equal to zero, the demand is equal to 1,9711. The F-statistic is high which indicates a good overall fit. SUMMARY OUTPUT Regression Statistics Multiple R 0.8857 R Square 0.7844 Adjusted R Square 0.7730 Standard Error 0.1793 Observations 21.0000 ANOVA df SS MS F Significance F Regression 1.0000 2.2227 2.2227 69.1221 0.0000 Residual 19.0000 0.6110 0.0322 Total 20.0000 2.8337
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