DS 533
Homework 3
Heller Company believes that the quantity of lawnmowers sold depends on the price of its
mower and the price of a competitors mower. Let
Y = quantity sold (1,000s).
X1 = price of competitors mower (dollars).
X2 = price of Hellers mower (
ECON 525
STUDY GUIDE FOR MID-TERM EXAM
1) Inventory model by Baumol-Tobin (assumptions, the graph of money holdings,
formula for the profit from asset management with all the components, optimal
solution for M* and n*, comparative static for M* and n*);
2
ECON 538: ECONOMICS FOR MANAGERS
Department of Economics and Decision Sciences
College of Business and Technology
Western Illinois University Quad Cities
Due on Feb 2
Homework 2 Total Points: 20
1. True or False. The price elasticity of demand measures th
Population Regression
y b0 b1 x
CI= estimate t* Seestimate
Least-squares line
y 0 1 x
std dev b1=
SEb1 S (b1 )
y b0 b1 x
General Regression Model
(x x)
Interval
SEb0 S (b0 ) se
2
RSE=
n
1
n
x2
n
(x x)
b1 t n 2 Sb1
(y
i
se
Std dev b0
se
Y 0 1 X
t-st