Economic
a.          Q = A + B.P + C.Pᵪ + D.Ad + E.I        Where, A = 807.91                B = -5.03                C = 4.86                D = 0.33                E = 0.01Q = 807.91 – 5.03P + 4.86Pᵪ + 0.33A + 0.01Ib.        1. Price variable (P) is all other things being equal                – increase of $1.00 in product price will decreased demand by 5.03 cases.        2. Competitor’s price variable (Pᵪ), if all other things being equal                – increase in competitor’s price by $1.00 will increase company’s demand by 4.86 cases.        3. Advertising variable (A), if all other things being equal                – increase of expenditures by $1.00 in advertising will increase demand by 0.33 cases.        4. Income variable (I), if all other things being equal                – increase in customer’s income by $1.00 will increase demand by 0.01 cases.c. . Evaluate the coefficient of determination for the regression model.The R2 = 90.4 per cent obtained by the model means that 90.4 per cent of demand variation is explained by the underlying variation in all four independent variables. This is a relatively high level of explained variation and implies an attractive level of an explanatory power.

d.  T-testn=30        k=5Variablest-ratiot-criticalResultP(-11.022)                  ≥2.060Cannot reject H₀P is significantPᵪ4.833                         ≥                 2.060Cannot reject H₀P is significantA3.141                         ≥2.060Cannot reject H₀A is significantI7.994                         ≥2.060Cannot reject H₀I is significantAll independent variables are significant.e.  Forecast demand for 5 markets        Regression model:  Q=807.91 – 5.034P + 4.86Pᵪ + 0.33A + 0.01I        Market A

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B.P And Price Variable. (June 26, 2021). Retrieved from https://www.freeessays.education/b-p-and-price-variable-essay/