Scenario 38-5. Researchers are interested in the height of the average person in San Francisco, California. Using a random sample of 1,000 people, they find that the average height in the sample is 68 inches. Refer to Scenario 38-5. What can you say about the sample and the results of the research? 000 The sample suffers from too much uncertainty. The finding has a huge margin of error. The sample is likely to be representative of the population because of the randomness. The sample is not representative of the population because of the randomness.

Interpret the coefficients and calculate the price elasticity of soft drink demand.

You are considering entry into a market in which there is currently only one producer (incumbent). If you enter, the incumbent can take one of two strategies, price low or price high. If he prices high, then you expect a $60K profit per year. If he prices low, then you expect $20K loss per year. You should enter if you believe demand is inelastic. you believe the probability that the incumbent will price low is greater than 0.75. you believe the probability that the incumbent will price low is less than 0.75. you believe the market size is growing.

The forecasting staff for the Prizer Corporation has developed a model to predict sales of its air-cushioned-ride snowmobiles. The model specifies that sales S vary jointly with disposable personal income Y and the population between ages 15 and 40, Z, and inversely with the price of the snowmobiles P. Based on past data, the best estimate of this relationship is S=kYZP where k has been estimated (with past data) to equal 100. If Y=11,000,Z=1,200, and P=20,000, what value would you predict for S? What happens if P is reduced to $17,500? How would you go about developing a value for k? What are the potential weaknesses of this model?