Question
In: Economics
A firm has decided through regression analysis that its sales (S) are a function of the...
A firm has decided through regression analysis that its sales (S) are a function of the amount of advertising (measured in units) in two different media, television (x) and magazines (y): S (x, y) = 100 – x2 + 30x – y2 + 40y (a) Find the level of TV and magazine advertising units that maximizes the firm's sales. (b) Suppose that the advertising budget is restricted to 31 units. Determine the level of advertising (in units) that maximizes sales subject to this budget constraint. (c) Give an economic interpretation for the value of the Lagrangian Multiplier obtained in part (b) above. (d) The marketing department of the firm is lobbying to have the advertising budget increased to 40. Do you agree with the marketing department? If not, what advertising budget would you recommend and why?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Multiple Regression Analysis The company has been able to determine that its sales in dollars depend...
Multiple Regression Analysis
The company has been able to determine that its sales in dollars
depend on advertising and
of the number of sellers and for this reason, it uses the data
from previous years to
be able to forecast possible sales for the year 2020.
Y X1
($ 000) X2 ($ 000)
Year Sales
Advertising Salesman
2013 $
10 $
1
1
2014 $ 15
$
2
1
2015 $
25
$
3 2
2016 $
40
$ 5 3...
You work for a firm that has decided to exploit the possibilities that sales abroad can...
You work for a firm that has decided to exploit the
possibilities that sales abroad can bring and want to become an
active exporter. You have 2 potential customers under
consideration:
a. The first customer you are considering is a potentially large
customer in Malaysia where the business potential could be about
15% of you current firm revenues per year for the next few years.
This customer requires standard diesel machines, similar to the
ones you are already supplying to...
Regression analysis queston. I wanna use Regression analysis to incoraparate sales of a protein powder. Maybe...
Regression analysis queston.
I wanna use Regression analysis to incoraparate sales of a
protein powder. Maybe the price vs sales or how it would go up or
down based on price. Give me some ideas!
I have to think of a problem dealing with two possibly related
variables (Y and X) that im interested in. Please create my problem
and discuss why a regression analysis could be appropriate for this
problem.
Specifically, what statistical questions would I be asking? Why...
Regression analysis question. I wanna use Regression analysis to incorporate sales of a protein powder. Maybe...
Regression analysis question. I wanna use Regression analysis to
incorporate sales of a protein powder. Maybe the price vs sales or
how it would go up or down based on price? What could i go
with?
I have to think of a problem dealing with two possibly related
variables (Y and X) that im interested in. Please create my problem
and discuss why a regression analysis could be appropriate for this
problem
Specifically, what statistical questions would I be asking?...
The following Regression function has been developed to check the relationship between Y- ‘Sales’ and the...
The following Regression function has been developed to check
the relationship between Y- ‘Sales’ and the following independent
variables;
X1- Time (Length of time employed in months)
X2 –Poten (Market potential)
X3 – AdvExp (Advertising expenditure in the sales territory)
X4 – Accounts (Number of accounts assigned to sales rep)
3 Consider the following Minitab output and answer the
questions. Regression Analysis: Sales versus Time, Poten,
AdvExp,
Accounts Regression Equation Sales = -391 - 0.58 Time + 0.02227
Poten +...
8. Santos Limited has expanded its exploration program and has decided to fund the expansion through...
8. Santos Limited has expanded its exploration program and has
decided to fund the expansion through the issue of additional
ordinary shares to its existing shareholders on a pro-rata basis of
one new share for each 5 shares held. The issue price is $11.75 per
share and the current market price is $11.95. The financial
advisers to the corporation have recommended the use of an
underwriting facility. The board of directors has noted that the
underwriting facility has an outclause...
The following is part of the results of a regression analysis involving sales (Y in millions...
The following is part of the results of a regression analysis
involving sales (Y in millions of dollars), advertising
expenditures (X1 in thousands of dollars), and number of
salespeople (X2) for a corporation. The regression was
performed on a sample of 10 observations.
Coefficient
Standard Error t
value
p value
Constant
-11.340
20.412
X1
0.798
0.332
2.404
0.0345
X2
0.141
0.278
0.507
0.2305
a. Write the regression equation.
b. Interpret the coefficients of the...
The commercial division of a real estate firm is conducting a regression analysis of the relationship...
The commercial division of a real estate firm is conducting a
regression analysis of the relationship between x, annual
gross rents (in thousands of dollars), and y, selling
price (in thousands of dollars) for apartment buildings. Data were
collected on several properties recently sold and the following
computer output was obtained.
The regression equation is
Y = 20.0 + 7.25 X
Predictor
Coef
SE Coef
T
Constant
20.000
3.2213
6.21
X
7.250
1.3624
5.29
Analysis of Variance
SOURCE
DF
SS...
The commercial division of a real estate firm is conducting a regression analysis of the relationship...
The commercial division of a real estate firm is conducting a
regression analysis of the relationship between x, annual
gross rents (in thousands of dollars), and y, selling
price (in thousands of dollars) for apartment buildings. Data were
collected on several properties recently sold and the following
computer output was obtained.
Analysis of Variance
SOURCE
DF
Adj SS
Regression
1
41587.3
Error
7
Total
8
51984.1
Predictor
Coef
SE Coef
T-Value
Constant
20.000
3.2213
6.21
X
7.210
1.3626
5.29
Regression...
The commercial division of a real estate firm is conducting a regression analysis of the relationship...
The commercial division of a real estate firm is conducting a
regression analysis of the relationship between x, annual
gross rents (in thousands of dollars), and y, selling
price (in thousands of dollars) for apartment buildings. Data were
collected on several properties recently sold and the following
computer output was obtained.
Analysis of Variance
SOURCE
DF
Adj SS
Regression
1
41587.3
Error
7
Total
8
51984.1
Predictor
Coef
SE Coef
T-Value
Constant
20.000
3.2213
6.21
X
7.210
1.3626
5.29
Regression...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
- Many people keep time using a 24 hour clock (11 is 11am and 23 is 11pm,...
- UNIX ONLY -- DIFFICULT LAB ASSIGNMENT This is an extremely difficult subject for me. Could you...
ADVERTISEMENT