07 Jun Question 1. Use regression to estimate the demand function. Show the re
Question
1. Use regression to estimate the demand function. Show the results.
2. Write the subsequent demand equation, with Qd as the dependent variable; Price, Advertising, Product Development, and Rel Price as the independent variables.
3. How strong is the relationship between the quantity demanded and the set of independent variables? List and briefly interpret at least two measures of this strength.
4. Which variable is most important in determining quantity demanded? Justify the reasoning?
The following sales and marketing data was accumulated by a manufacturer over the past 12 quarters.
Qd Price Adv Prod Dev Rel Price
561,628 $ 9.75 $ 150,000 $ 115,000 $ 9.46
697,734 $ 9.25 $ 162,000 $ 100,000 $ 9.44
761,217 $ 9.40 $ 125,000 $ 125,000 $ 10.14
667,994 $ 10.25 $ 250,000 $ 100,000 $ 10.09
496,985 $ 10.40 $ 200,000 $ 150,000 $ 10.21
637,148 $ 9.90 $ 160,000 $ 120,000 $ 10.16
569,773 $ 10.55 $ 250,000 $ 100,000 $ 10.34
663,146 $ 10.17 $ 245,000 $ 115,000 $ 10.31
432,424 $ 10.30 $ 185,000 $ 140,000 $ 10.52
535,571 $ 10.50 $ 140,000 $ 150,000 $ 10.56
698,376 $ 10.20 $ 185,000 $ 140,000 $ 10.38
793,260 $ 10.00 $ 120,000 $ 150,000 $ 10.32
Variable Definitions:
Qd = quantity demanded, in units
Price = price per unit charged by the firm that quarter
Adv = dollars spend in advertising, that quarter
Prod Dev = dollars spent in product development that quarter. Product development should be thought of as
money spent on developing additional features or properties that make the product more desirable
in the eyes of customers.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.