Agnes, a General Manager in XXX Company, estimated a multiplicative demand function of the form: using a cross-section data collected in the company sales on 30th June, 2019. The estimation results are as follows: (SEE IMAGE) Write down the estimated demand equation Interpret the coefficients and R2 value Describe any three managerial decisions that can be applied by the manager from the estimated demand function
Agnes, a General Manager in XXX Company, estimated a multiplicative demand function of the form: using a cross-section data collected in the company sales on 30th June, 2019. The estimation results are as follows: (SEE IMAGE) Write down the estimated demand equation Interpret the coefficients and R2 value Describe any three managerial decisions that can be applied by the manager from the estimated demand function
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
- Agnes, a General Manager in XXX Company, estimated a multiplicative demand
function of the form: using a cross-section data collected in the company sales on 30th June, 2019. The estimation results are as follows: (SEE IMAGE)
- Write down the estimated demand equation
- Interpret the coefficients and R2 value
- Describe any three managerial decisions that can be applied by the manager from the estimated demand function
![Constant
Price (P)
Income (I) Price of Other Good (PO)
Estimated coefficien
0.022
-0.223
1.354
0.133
Standard Error
0.012
0.056
0.502
0.814
t-statistic
(1.19)
(-3.98)
-2.69
-0.13
Number of Observations, n = 210; R-squared = 0.7516
Critical Students't= 1.96 at 5% Level of Signi ficance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ea7c759-00ab-4dab-a2cd-22da7785e146%2Fa6e26136-a91a-4bb2-b429-0298adbcb189%2Fyxp4eie_processed.png&w=3840&q=75)
Transcribed Image Text:Constant
Price (P)
Income (I) Price of Other Good (PO)
Estimated coefficien
0.022
-0.223
1.354
0.133
Standard Error
0.012
0.056
0.502
0.814
t-statistic
(1.19)
(-3.98)
-2.69
-0.13
Number of Observations, n = 210; R-squared = 0.7516
Critical Students't= 1.96 at 5% Level of Signi ficance
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