A regression analysis of company profits and the amount of money the company spent on advertising produced a R² = 0.72. Which of these is TRUE? 1. This model can correctly predict the profit for 72% of companies. II. 72% of the variance in company profit can be accounted for by the model. III. On average, companies spend about 72% of their profits on advertising. A. None OB. I and III OC. II only OD. III only OE. I only ver
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- A large company in the communication and publishing industry hs quantified the relationship between the price of one of its products and the demand for this product as Price = 160 -0.01 xDemand for an annual printing of this particular product. The foxed costs per year (ie. per printing) = $4T 000 and the variable cost per unit = $35. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 7,000 units per year. The maximum profit that can be achieved is S. (Round to the nearest dolar.) The unit price at the point of optimal demand is S per unit (Round to the nearest cent)I- Demand for a product is estimated to be Q=960 - 1.2P + 1.4Y +.003A where, Q and P are the quantity and price of the product respectively, Y is income, and A is the advertising expenditures. All the variables are in the natural logarithmic form and all the estimated coefficients are statistically significant. The average annual sale and the average price of the product are 60000 units and $8000 respectively. A. Price elasticity of demand is -------------, income elasticity of demand is ---------, advertising elasticity of demand is B. The optimum level of advertising spending for the firm isA company has established that the relationship between the sales price for one of its products and the quanlity sokld per month is approximalely p=75-0. 1D (D is the demand or quantity sold per month and p is the price in dollars). The fixed cost is $1,000 per month and the variable cost is $30 per unit produced. a. What is the maximum profit per month for this product? b. What is the range of profitable demand during a month? a. The maximum profit per month for this product is $. (Round to the nearest dollar.) b. The range of profitable demand during a month is from units to units. (Round up the lower limit and down the upper limit to the nearest whole number.)
- Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes and probabilities of the outcomes are shown next. Possible Outcomes Ineffective campaign Normal response Extremely effective Additional Sales in Coefficient of variation Units 50 70 130 Probabilities 0.40 0.30 0.30 Compute the coefficient of variation. Note: Do not round intermediate calculations. Round your answer to 3 decimal places.IV. 得分 What information can be obtained from this summary output? a to enter = 0.05, a to remove = 0.05 Analysis of Variance Source DF Adi sS Adi MS F-Value P-Value www Regression 4 37260200 9315050 45. 23 0. 000 0. 000 0. 000 Poten 1 4727687 4727687 22. 95 AdvExp 4630364 4630364 22. 48 Share 1 3009401 3009401 14. 61 0.001 Accounts 1 2129972 2129972 10. 34 0.004 Error 20 4119349 205967 Total 24 41379549 R-sq R-sq (adi) R-sq (pred) 453. 836 90. 04% 88. 05% 85. 97% Coefficients Term Coef SE Coef T-Value P-Value VIF Constant -1442 424 -3. 40 0,003 Poten 0. 03822 0. 00798 4. 79 0. 000 1. 83 AdvExp 0. 1750 0. 0369 4. 74 0. 000 1. 15 Share 190. 1 49. 7 3. 82 0.001 1.74 Accounts 9. 21 2. 87 3. 22 0. 004 1. 99 Fits and Diagnostics for Unusual Observations Std Obs Sales Fit Resid Resid www 10 4876 3942 934 2. 14 Rhow to calulate the fixed overhead spending variance?
- 2572/quizzes/secured#lockdown Continuous Question 2 Classify the random variable as either discrete or continuous. The number of runs scored in a 9 inning baseball game. O Discrete O ContinuouS Question 3 Larger values of the standard deviation result in a normal curve shifted to the rightY 70 12 50 9 57 60 14 43 9 52 11 i. Find the estimators for Bi and B2 correct to decimal points and fit the regression equation for X and Y when X is the explanatory variable. Interpret the results from the obtained equation. calculate the sum of error squared. Find the variance of the sum square error ii. iii. iv. Find the standard error for B2 Find the coefficient of correlation and give its interpretation V. vi.8. Which of the following best describes the linear probability model? The model is the application of the linear multiple regression model to a binary dependent variable The model is an example of probit estimation The model is another form of logit estimation The model is the application of the multiple regression model with a binary variable as at least one of the regressors OO
- Describe the important characteristics of the variance of a conditional distribution of an error term in a linear regression. What are the implicationsfor OLS estimation?A company produces and sells a consumer product and thus far has been able to control the volume of the product by varying the selling price. The company is seeking to maximize its net profit. It has been concluded that the relationship between price and demand, per month, is approximately D = 800 - 8p, where p is the price per unit in dollars. The fixed cost is $1,000 per month, and the variable cost is $20 per unit. Obtain the answer mathematically to the following questions: a. What is demand that will maximize revenue per month and the maximum revenue b. What is the optimal number of units that should be produced and sold per month? c. What is the maximum profit per month? d. What are the breakeven sales quantities and the range of profitable demand (volume)?A company produces and sells a consumer product and thus far has been able to control the volume of the product by varying the selling price. The company is seeking to maximize its net profit. It has been concluded that the relationship between price and demand, per month, is approximately D = 500 - 5p, where p is the price per unit in dollars. The fixed cost is $1,000 per month, and the variable cost is $20 per unit. Obtain the answer mathematically to the following questions: a.What is the optimal number of units that should be produced and sold per month? b. What is the maximum profit per month? c. What are the breakeven sales quantities and the range of profitable demand volume?