Homework #5

# Homework #5 - To estimate the coefficient forprice(P...

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Darial Sneed @02638624 Managerial Economics 12:40 Class Homework #5 Mrs. Smyth’s Pies Questions: A, B, C, D A. Describe the economic meaning and statistical significance of each individual of each individual independent variable included in the Mrs. Smyth’s frozen fruit pie demand equation. The economic meaning and statistical significance of the independent variables can be interpreted as; The intercept term, 646,958, has no economic and cannot be interpreted as the demand for all the independent variables take on zero values. The coefficient for each independent variable indicates the marginal relation between that variable and sales of pies, holding constant the othervariables in the demand function. Y = a + bX, a one-unit change in X will always lead to a b-unit change in Y, If b > 0, X and Y will be directly related; if b < 0, X and Y will be inversely related. its value is estimated by the regression coefficient ^b . If ^b = 10, a 1-unit change in X will increase Y by 10 units.

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Unformatted text preview: To estimate the coefficient forprice (P), advertising (A), competitor price (PX) and population (Pop) are twice the error. B. Interpret the coefficient of determination (R 2 ) for the Mrs. Smyth’s frozen fruit pie demand equation. The data provided will be classified as a trend or a uprising slope acting parallel. The reason being the coefficient of 87.1%. The 87.1% is in good standing with the measurement for the determination. C. Use the regression model and 2007-4 data to estimate 2008-1 unit sales in the Washington-Arlington-Alexandria market. Q = 646957.817 - 127442.803(7.36) + 5.353(30,487) + 29,337.340(5.32) + 0.344(41,989) + 0.024(7,782,654) + 4,405.940(9) = 268,869 pies. D. To illustrate use of the standard error of the estimate statics, derive the 95 percent and 99 percent confidence intervals for 2008-1 unit sales in the Washington-Arlington-Alexandria market. Paul Oladeinde Managerial Economics Homework Chapter 5 February 14, 2012...
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Homework #5 - To estimate the coefficient forprice(P...

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