The maker of a leading brand of low-calorie microwavable food estimated the foll
ID: 1215851 • Letter: T
Question
The maker of a leading brand of low-calorie microwavable food estimated the following demand equation for its product using data from 26 supermarkets around the country for the month of April: Q = -5,200 - 42P + 20 Px + 5.21 + 0.20A + 0.25 M (2.002) (17.5) (6.2) (2.5) (0.09) (0.21) R^2 = 0.55 n = 26 F = 4.88 Assume the following values for the independent variables: Q = Quantity sold per month P (in cents) = Price of the product = 500 P_X (in cents) = Price of leading competitor's product = 600 I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarket is located = 5,500 A (in dollars) = Monthly advertising expenditure = 10,000 M = Number of microwave ovens sold in the SMSA in which the supermarket is located = 5,000 Calculate the quantity using the given values for the independent variables.Explanation / Answer
Q= - 5200 -42P +20Px +5.2 I + 0.20 A +0.25M
after inserting values of all independent variables
Q= -5200 - 42(500) +20(600) +5.2(5500) +0.20(10000) +0.25(5000) = -5200 -21000 +12000 +28600 +2000+1250
Q= 17650
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.