In Assignment 8, you estimated an updated version of Irwin and Good's ending-stocks-to-use modelfor soybeans. This model allows for a level shift in the relationship between ending-stocks-to-useand price depending on the historical time period specified by the modeler. You estimated thefollowing regression equation:Price = 5.23 + 7.77(,(Stocks-to-Use) -1.62A+ 7.45B + 4.93C + 3.00Dwhere A, B, C, and D are indicator variables for the four sub-periods identified by Irwin and Goodand labelled on the graph below:US Soybean Ending Stocks to Use vs Price, 1990/91-2020/2115.0013.00Strong11.00Moderate9.00Weak7.00Base5.00AsianCrisis3.000%5%10%15%20%25%Source: USDA WASDEEnding Stocks to Use RatioMatch the letter to the named subperiod on the graph.A[ Choose ][ Choose ][ Choose ]D[ Choose ]>>Price (S/bu.)

A regression model is a statistical approach to model the relationship between a dependent variable…

In Assignment 8, you estimated an updated version of Irwin and Good's ending-stocks-to-use model for soybeans. This model allows for a level shift in the relationship between ending-stocks-to-use and price depending on the historical time period specified by the modeler. You estimated the following regression equation: Price = 5.23 +7.77( -) - 1.62A +7.45B +4.93C + 3.00D

In Assignment 8, you estimated an updated version of Irwin and Good's ending-stocks-to-use model for soybeans. This model allows for a level shift in the relationship between ending-stocks-to-use and price depending on the historical time period specified by the modeler. You estimated the following regression equation: Price = 5.23 +7.77( -) - 1.62A +7.45B +4.93C + 3.00D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The Weibracht Corporation designs and manufactures custom beer steins for some of the numerous brew pubs in western North Carolina. Each stein costs Weibracht $8 to produce. The brew pubs purchase the steins from Weibracht for resale to their customers and require a 51% margin. Weibracht’s marketing director has conducted a regression analysis using historical data, resulting in the following regression line: q = -12 * p + 326, where q = slope * retail price + MWB What is the profit maximizing price that Weibracht should charge the brew pubs for these custom steins?