d. What will happen, in percentage terms, to the number of cans of tennis balls demanded if the price of tennis balls decreases 15 percent? (Need answer) e. What will happen, in percentage terms, to the number of cans of tennis balls demanded if average household income increases by 20 percent? (Need answer) f. What will happen, in percentage terms, to the number of cans of tennis balls demanded if the average price of tennis rackets increases 25 percent?
Q. Wilpen Company, a
Q = a + bP + cM + dPR.
Where Q is the number of cans of tennis balls sold quarterly, P is the wholesale price Wilpen charges for a can of tennis balls, M is the consumers’ average household income, and PR is the average price of tennis rackets. The regression results are as follows:
a. Discuss the statistical significance of the parameter estimates a^, b^, c^, and d^ using the p-values. Are the signs of b^, c^, and d^ consistent with the theory of demand?
Wilpen plans to charge a wholesale price of $1.65 per can. The average price of a tennis racket is $110, and consumers’ average household income is $24,600.
b. What is the estimated number of cans of tennis balls demanded?
c) At the values of P, M, and Pr given, what are the estimated values of the price (E^), income (E^m),
and cross-
(Need answer) d. What will happen, in percentage terms, to the number of cans of tennis balls demanded if the price of tennis balls decreases 15 percent?
(Need answer) e. What will happen, in percentage terms, to the number of cans of tennis balls demanded if average household income increases by 20 percent?
(Need answer) f. What will happen, in percentage terms, to the number of cans of tennis balls demanded if the average price of tennis rackets increases 25 percent?
Note: Please provide answers for questions (d, e, and f)
Thank you
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