4. Suppose that you are a financial analyst for the popular restaurant chain Applebee's. Theregionalmanager, Ed, is wanting you to estimate the cost curve of the Applebee's in the Northeast district. Hewants you to run the following model:In(Costi) = +ªQi +°¤Longlslandi +uwhere Cost is the cost of operations on day i, Qi is the number of meals served, and LongIsland, isthe number of Long Islands (an alcoholic beverage) served on day i.You estimate the model and get the following results:SUMMARY OUTPUTRegression StatisticsMultiple RR SquareAdjusted R Squ0.480.230.22Standard Error0.00Observations174ANOVAdfSSMSFSignificance FRegressionResidual7.59257E-052.96121E-0620.0025.640.001711730.00Total0.00Coefficients Standard Error9.23Upper 95%9.25t StatP-valueLower 95%Intercept0.01867.680.009.21Q0.00060.002.250.030.000.00Long Island0.00040.002.460.020.00What is the statistical interpretation of a and îa?

Given information: The output of multiple linear regression is given.

Answered: 4. Suppose that you are a financial…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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c) The fixed costs of a business for production of a particular item over a period are $1000 while the production cost per unit is $90. If the business is able to produce and sell 200 items over the period, what should the sales price of the item be in order for the business to break even?
6. (a) A man has $4.55 in change composed entirely of dimes and quarters. What are the maximum and minimum number of coins that he can have? Is it possible for the number of dimes to equal the number of quarters? (b) The neighborhood theater charges $1.80 for adult admissions and $.75 for children. On a particular evening the total receipts were $90. Assuming that more adults than children were present, how many people attended? (c) A certain number of sixes and nines is added to give a sum of 126; if the number of sixes and nines is interchanged, the new sum is 114. How many of each were there originally?
Suppose you are the marketing manager of a firm, and you plan to introduce a new product to the market. You have to estimate the first year net profit, which depends on several variables • Sales volume (in units) • Price per unit • Unit cost . Fixed costs Your net profit is net profit = sales volume x (price per unit-unit cost) - fixed cost The fixed cost is $120, 000, but other factors have some uncertainty. Based on your market research, there are equal chance that the market will be slow, ok, or hot. • Slow market the sales volume follows Poisson distribution with mean 50,000 units product, and the average price per unit is $11.00 ● Ok market the sales volume follows Poisson distribution with mean 75,000 units product, the average price per unit is $10.00 Hot market: the sales volume follows Poisson distribution with mean 100,000 units product, but the competition is severe so you expect the average price per unit is just $8.00 No matter what the market type is, your average unit…
An investor wants to exactly replicate the put option's payoff so he considers to buy X shares of the stock and Y shares of bonds. Suppose the stock price is $70 and the bond price with coupon rate 5% is $100. The stock price will either go up 15% or down 8% in one year. There are one European call option and one European put option with exercise price of $70 that will be expired in one year. Short selling is allowed. What are the values of X and Y?
Refer to the production possibilities curves for Chairland and Tableland. Chairland can produce 36 chairs per day and no tables, or 18 tables table per day and no chairs. Tableland can produce 40 chairs per day and no tables, or 40 tables per day and no chairs. If the two countries split the difference between the buyer's willingness to pay for tables and the seller's willingness to accept, in terms of the number of chairs for 1 table, the terms of trade will be . (Enter your response rounded to one decimal place.) Country Quantity per day Opportunity cost of chairs Opportuity cost of tables Tableland 40 chairs, 40 tables 1 table 1 chair Chairland 36 chairs, 18 tables 1/2 table 2 chairs
32. A hardware company sells a lot of low-cost, highvolume products. For one such product, it is equallylikely that annual unit sales will be low or high. Ifsales are low (30,000), the company can sell theproduct for $20 per unit. If sales are high (70,000),a competitor will enter and the company will be ableto sell the product for only $15 per unit. The variablecost per unit has a 20% chance of being $10, a 60%chance of being $11, and a 20% chance of being $12.Annual fixed costs are $20,000.a. Use simulation to estimate the company’s expectedannual profit.b. Find a 95% interval for the company’s annualprofit, that is, an interval such that about 95% ofthe actual profits are inside it.c. Now suppose that annual unit sales, variable cost,and unit price are equal to their respective expectedvalues—that is, there is no uncertainty. Determinethe company’s annual profit for this scenario.d. Can you conclude from the results in parts a and cthat the expected profit from a simulation is…

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4. Suppose that you are a financial analyst for the popular restaurant chain Applebee's. Theregional manager, Ed, is wanting you to estimate the cost curve of the Applebee's in the Northeast district. He wants you to run the following model: