Q4 a) The sales manager of a company believes that the district sales (S.) of motor vehicles has been growing according to the model S = So (1 + g, where t is the time. Average sales is 50 units and average time is 4 years. He obtains the following OLS regression results: In S, = 3.6889 + 0.0583 t i. What is the estimate of the instantaneous and compound growth rate? ii. What is the estimate of So? ii. What will be the elasticity of sales with respect to time? iv. Suppose the researcher modifies the above equation and estimates the following regression: S, - 5.6731 + 2.7530 t Interpret the model. v. Compute elasticity of sales with respect to time for the model in part iv. Compare your results with the answer obtained in part ii.

Q4 a) The sales manager of a company believes that the district sales (S.) of motor vehicles has been growing according to the model S = So (1 + g, where t is the time. Average sales is 50 units and average time is 4 years. He obtains the following OLS regression results: In S, = 3.6889 + 0.0583 t i. What is the estimate of the instantaneous and compound growth rate? ii. What is the estimate of So? ii. What will be the elasticity of sales with respect to time? iv. Suppose the researcher modifies the above equation and estimates the following regression: S, - 5.6731 + 2.7530 t Interpret the model. v. Compute elasticity of sales with respect to time for the model in part iv. Compare your results with the answer obtained in part ii.

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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