The ATV Company produces a specialty cement used in the construction of roads. ATV is a price-setting firm and estimates the demand for its cement using a demand function in the linear form: Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard. The manager of ATV obtained the following results in her attempt to estimate the demand for cement in the succeeding months. The results are presented below: DEPENDENT VARIABLE Qc R- SQUARE F-RATIO P-VALUE ON F OBSERVATIONS 64 0.8093 84.872 0.0001 VARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 1. What can you say about the relationship between cement and asphalt? Why?
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Given: The ATV Company produces a specialty cement used in the construction of roads. ATV is a price-setting firm and estimates the demand for its cement using a demand
Q = f( P, M, PR)
where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard. The manager of ATV obtained the following results in her attempt to estimate the demand for cement in the succeeding months. The results are presented below:
|
DEPENDENT VARIABLE |
Qc |
R- SQUARE |
F-RATIO |
P-VALUE ON F |
|
|
OBSERVATIONS |
64 |
0.8093 |
84.872 |
0.0001 |
|
|
VARIABLE |
PARAMETER ESTIMATE |
STANDARD ERROR |
T-RATIO |
P-VALUE |
|
|
INTERCEPT |
|
8.20 |
4.01 |
2.04 |
0.0461 |
|
PC |
-3.54 |
1.64 |
-2.16 |
0.0357 |
|
|
M |
|
0.64287 |
0.19 |
3.38 |
0.0014 |
|
PA |
0.7854 |
0.38 |
2.07 |
0.0439 |
1. What can you say about the relationship between cement and asphalt? Why?
Step by step
Solved in 2 steps
