Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 3, Problem 20P
A company that manufactures shuttle cars and mines for the coal mining industry has determined that “coal production in the U.S.” is a fairly reliable three-quarter leading indicator of their sales. This quarter’s coal production in the United States can be obtained from the Department of Energy and it is used to obtain a
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All questions utilize the multivariate demand function for Smooth Sailing sailboats in C6 on text page 83. Compute to three decimal places.
Initial values are: PX = $9500 PY = $10000 I = $15000 A = $170000 W = 160
This function is: Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W
1.(a). Use the above to calculate the arc price elasticity of demand between PS = $9000 decreasing to PS = $8000. The arc elasticity formula is:
1.(b). Judging from the computation in (a), do you expect the revenue resulting from the decrease in Ps to $8000 to increase, remain the same, or decrease relative to the revenue at Ps = $9000. (Hint: see the table on page 65 of Truett). Explain your choice.
1.(c). Calculate the point elasticity of demand for Smooth Sailing sailboats at PS = $9000 (which should make Qs = 101600). The formula is:
1.(d). Does this elasticity value indicate that Smooth Sailing demand is relatively responsive to changes in the price of these sailboats? Explain…
A linear regression model for the revenue data for a company is R=27.1t+203 where R is total annual revenue and t is time since 1/31/02 in years.
12 months
12 months
12 months
Billions of
Dollars
Revenue
Gross Profit
12 months
12 months
ending 1/31/02ending 1/31/03ending 1/31/04 ending 1/31/05 ending 1/31/06
500-
201
49
236
54
255
60
500-
277
65
(A) Draw a scatter plot of the data and a graph of the model on the same axes.
OA.
B.
O.C.
KICB
Q
2
316
72
500-
oo
D.
500-
Q
G
A forecaster used the regression equation
Qt= a + bt+q₁D₁ + C2D2 + c3D3
and quarterly sales data for 2004/-2021/V (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D1, D₂
and D3 are dummy variables for quarters I, II, and III.
DEPENDENT VARIABLE: QT R-SQUARE
OBSERVATIONS:
64 0.8768
VARIABLE
INTERCEPT
T
D1
D2
D3
F-RATIO P-VALUE ON F
107.982 0.0001
PARAMETER STANDARD
ESTIMATE
30.0
1.5
10.0
25.0
40.0
ERROR T-RATIO P-VALUE
2.34
0.0224
2.14
0.0362
3.33
0.0015
3.47
0.0010
2.53
0.0140
12.80
0.70
3.00
7.20
15.80
In any given year, quarterly sales tend to vary as follows:
Chapter 3 Solutions
Engineering Economy (17th Edition)
Ch. 3 - A green (environmentally friendly) office building...Ch. 3 - You are planning to build a new home with...Ch. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prepare a composite (weighted) index for housing...Ch. 3 - Prob. 10P
Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - The capital investment cost for a...Ch. 3 - The capacity of a switch grass-fueled ethanol...Ch. 3 - Prob. 16PCh. 3 - The time to assemble the first unit on a...Ch. 3 - Prob. 18PCh. 3 - For the data below (3.4 .3) a. Find the regression...Ch. 3 - A company that manufactures shuttle cars and mines...Ch. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 25PCh. 3 - Prob. 26PCh. 3 - Prob. 28SECh. 3 - Prob. 31CSCh. 3 - Prob. 32CSCh. 3 - Prob. 36FECh. 3 - Prob. 37FECh. 3 - Prob. 38FECh. 3 - Prob. 39FECh. 3 - Prob. 40FECh. 3 - Prob. 41FE
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