Market research
Not what you're looking for?
Market research is often concerned with how consumers adjust their expenditure on various commodities as their level of income increases. In this example we focus on households that consist of two adults and no children, and we examine how a change in income changes expenditure on food and transportation. Observations on weekly expenditure for these two commodities, as well as weekly income (x), number of children (k) and number of adults (a), for 1000 households, appear in the file hhsurvey.xls Questions appear in the ms word document file.
Purchase this Solution
Solution Summary
Market research is examined. Household expenditure functions are examined.
Solution Preview
(a) From the sample of 1000 households, how many households have 2 adults and no children.
By EXCEL filtering, we find that 312 households have 2 adults and no children.
(b) Let y1 = weekly expenditure on food, y2 = weekly expenditure on transport. For the subsample of households in part (a), estimate the following two expenditure functions
y1t = β1 + β2ln(xt) + e1t
y2t = α1 + α2ln(xt) + e2t
Report the estimated coefficients, their standard errors, and the R2 for each equation. Briefly and clearly comment on the results (Each point you make in your comment state it clearly as, ...
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.