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Regression analysis in laymen terms

Suppose your employer buys you a copy of Excel and you decide to learn regression analysis. You gather some historical data on Sales and Advertising expenses and run a simple regression using Sales as the dependent variable and Advertising Expense as the independent variable. The results you get are shown below, with the relev

Summary of Regression Output

In your first position as a Finance manager you have been given responsibility for reducing use of residential heating fuel in the state. You must select one of three legislative proposals to accomplish this goal a. Tax residential heating fuel that would raise the price to $2.00 per gallon; b. Offer a subsidy on natural ga

Demand Analysis

Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by susing the following linear specification: Q = a + bP = cM +dPR Where Q is the number of cans of tennis balls should quarterly, P is the wholesale pr

Simple Regression for European Engine Company

Simple Regression. The European Engine Company (EEC) is a multi-national manufacturer of small gasoline and diesel motors. EEC has estimated the following cost experience for a new 3.5 hp engine over a sample of 122 observations: COST = $8,500 + $32 OUTPUT Predictor Coef Stdev t ratio Constant 8,500 5,000 1.7 OUTPUT

Regression lines/hypothesis @ .05 significance level

Wishwell Tile Company uses the number of construction permits issued to help estimate demand (sales). The firm collected the following data on annual sales and number of construction permits issued in its market area: No. of Construction Sales Year Permits Issued (000) (1,000,000) 19X1 6.50 10.30 19X

Regression analysis

6. Assume Y is household income and HE is household expenditures on health care. Use the information from the regression output to answer the following: a. Use the regression results to write out the linear equation. Are the parameter estimates statistically significant? What does this imply? How would you interpret the param

Managerial Economics Applied Problem

Wilpen Company, a price-setting form, produces nearly 80 percent of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by using the linear specifications: Q = a +bp+cm+dpr Where Q is the number of cans of tennis balls sold quarterly, P is the wholesale proce Wilpen charges f

Regression Equation

Directions: Clean Supreme is a company that manufactures and sells powdered laundry detergent in the United States. The firm has estimated the following regression equation for the demand of its Brand Z detergent: QZ = 1.0 â?" 2.0PZ + 0.7I + 1.5PA + 0.5PB + 1.5A Where QZ = sales of powdered laundry detergent brand Z, in m

Short Case Situation Analysis

1. To ensure that the correct size of heart valve is available for heart surgery, Heart Plus, the maker of the valves employs salespeople to place and maintain inventories at hospitals in its market. After a valve is used in surgery, Heart Plus, bills the patient's insurance company and credits the sales person with a sale. Ea

Regression Analysis

Regression analysis was used to estimate the following linear trend equation: St = 10.5 + 0.25t Use this equation to forecast the value of the dependent variable (St) in time period of 10. 10.75 13 35.5 2.5

Regression Analysis

A multiple regression analysis based on a data set that consists of 30 observations yielded the following estimated demand equation: Q = 120 - 1.1P + 0.04 I + 0.90 A Where P is price, I is income, and A is advertising. If price is equal to $1,000, income is equal to $20,000, and advertising expenditures are equal to $500

Regression Analysis

Regression analysis was used to estimate the following seasonal forecasting equation: St = 124 + 18 D1 - 46 D2 - 28 D3 + 2.5 t D1 is a dummy variable that is equal to one in the first quarter and zero otherwise; D2 is a dummy variable that is equal to one in the second quarter and zero otherwise; and D3 is a dummy variable

Economics- Regression Analisys

3. Rubax, a U.S. manufacturer of athletic shoes, estimates the following linear trend model for shoe sales: Qt= a + bt + c1D1 + c2D2 + c3D3 Where Qt= sales of athletic shoes in the tth quarter t = 1,2,3, ......., 28 (2001(I), 2001(II), ........., 2007(IV) ) D1 = 1 if t is quarter I (winter); 0 otherwise D2 = 1 if t i

Regression results evaluating

Starting with the data on the price of a related commodity for years 1986 to 2005 listed below, we have estimated the regression for the quantity demanded of a commodity (which we now label Q ̂X), on the price of the commodity (which we now label PX), consumer income (which we now label Y), and the price of the related commodit

Regression Analysis

Passage of the 1983 Dairy Product Stabilization Act authorized establishing a national program for dairy products designed to increase human consumption of milk dairy products and reduce the industry's reliance on government price supports. The activities of the (then) newly established organization-the National Dairy Promotion

Cobb Douglas Production

Estimate the cobb Douglas production function Q = ΑL^B1K^Β2, where Q= out put, L labour input K= capital input and A,B1,B2 are parameters to be estimated. test whether the coeficient of capital and labour are statistically significant. Determine the percentage of the variation in output that is explained by the r


1. Consider you own a small restaurant business. You collected data on the average variable costs of your business for the past 12 months. You have been adjusted the cost data for inflation by deflating with an appropriate price index. Your output (Q) and the associated average variable cost (AVC) data are presented below:

Mathematical Economics

Franklin Electric is a holding company interested in the possible acquisition of "electricity retailers" that are expected to be spun off as the industry is deregulated. As the project point person you have been asked to do some preliminary demand analysis in order to better understand this particular market. Franklin hired a

Demand Analysis and Demand Estimation

MULTIPLE CHOICE 1. If P1 = $5, Q1 = 10,000, P2 = $6 and Q2 = 5,000, then a linear estimate of the demand curve is: a. P = $7  $0.002Q b. P = $5 + $10,000Q c. Q = 7  0.002P d. Q = 35,000  5,000P 2. If P1 = $5, Q1 = 10,000, P2 = $6 and Q2 = 5,000, then at point P2 an estimate of the point

Please answer all question

If the home currency begins to appreciate against other currencies, this should ___ the current account balance, other things equal (assume that substitutes are readily available in the countries, and that the prices charged by firms remain the same). A) increase B) have no impact on c) reduce D) all of these are equally pos

Cost accounting

In the way to check my understanding I think that I would need help in these question. 1. In general, more observations are required when cost and activity levels are unstable; i.e., the company's operations have changed significantly within the relevant range. True False 2. One advantage that regression techniques h

Demand Analysis

Wilpen Company, a price setting firm, produces nearly 80 ercent of all tennis balls purchased in the US. Wilpen estimates the US demand for its tennis balls by using the following linear specification: Q= a + bP + cM + dP (R) where Q is gthe number of cans of tennis balls sold quarterly, P is the wholesale price Wilpen ch

Interpretation of Regression Analysis Output

First Simple Regression Equation Cost1 = $13,123 - $0.30 Output Predictor Coefficient Standard Deviation t Ratio p Constant 13,123 2,635 4.98 0.000 Output -0.297 2.285 -0.13 0.899 SEE = $4,871; R² = 0.2%; R-bar² = 0.0%; F statistic = 0.02 (p = 0.899) Second Simple Regression Equation

Multiple Regression - Vanguard Corporation

The director of marketing at Vanguard Corporation believes that sales of the company's Bright Side laundry detergent (S) are related to Vanguard's own advertising expenditure (A), as well as the combined advertising expenditures of its three biggest rival detergents (R). The marketing director collects 36 weekly observations on

Sales Forecasting

AC556 Week 2 Problem Sales Forecasting NOTE: It is expected that this problem will be completed using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is available under the course home tab. The Schonlind Company has gathered information regarding past sales: Year Sales 1999 $300,000 2000 225,

Dependent Variable

Scenario 2: Below is a multiple regression in which the dependent variable is market value of houses and the independent variables are the age of the house and square footage of the house. The regression was estimated for 42 houses. SUMMARY OUTPUT Regression Statistics Multiple R 0.745495 R Square 0.555762 Adj