San Francisco Bread Company Demand (Q) Price (P) Competitor Price (Px) Advertising (Ad) Income (I) ...

San Francisco Bread Company
Demand (Q)	Price (P)	Competitor Price (P_x)	Advertising (Ad)	Income (I)
599,201	$6.66	$5.96	$206,647.00	$52,955.00
572,258	$8.01	$5.30	$207,025.00	$54,391.00
558,142	$7.53	$6.16	$207,422.00	$48,491.00
627,973	$6.51	$7.56	$216,224.00	$51,219.00
593,024	$6.20	$7.15	$217,954.00	$48,685.00
565,004	$7.28	$6.97	$220,139.00	$47,219.00
596,254	$5.95	$5.52	$220,215.00	$49,775.00
652,880	$6.42	$6.27	$220,728.00	$54,932.00
596,784	$5.94	$5.66	$226,603.00	$48,092.00
657,468	$6.47	$7.68	$228,620.00	$54,929.00
519,866	$6.99	$5.10	$230,241.00	$46,057.00
612,941	$7.72	$5.38	$232,777.00	$55,239.00
621,707	$6.46	$6.20	$237,300.00	$53,976.00
597,215	$7.31	$7.43	$238,765.00	$49,576.00
617,427	$7.36	$5.28	$241,957.00	$55,454.00
572,320	$6.19	$6.12	$251,317.00	$48,480.00
602,400	$7.95	$6.38	$254,393.00	$53,249.00
575,004	$6.34	$5.67	$255,699.00	$49,696.00
667,581	$5.54	$7.08	$262,270.00	$52,600.00
569,880	$7.89	$5.10	$275,588.00	$50,472.00
644,684	$6.76	$7.22	$277,667.00	$53,409.00
605,468	$6.39	$5.21	$277,816.00	$52,660.00
599,213	$6.42	$6.00	$279,031.00	$50,464.00
610,735	$6.82	$6.97	$279,934.00	$49,525.00
603,830	$7.10	$5.30	$287,921.00	$49,489.00
617,803	$7.77	$6.96	$289,358.00	$49,375.00
529,009	$8.07	$5.76	$294,787.00	$48,254.00
573,211	$6.91	$5.96	$296,246.00	$46,017.00

Create a descriptive statistics table for our variables in word for submission (simply export from excel and cleaning it up a bit)
Create a table showing the variable names, coefficients, and p-values, indicating which variables are statistically significant for submission (export from excel and clean up a bit)
Write out the regression equation for sales here based on excel output:
Interpret the coefficient on our own price here:
If a manager increases our price by $2 then what is the predicted impact on sales?

Expert Solution

a.

Variable	Obs	Mean	Std	Min	Max
Demand (Q)	28.00	598545.79	35021.89	519866.00	667581.00
Price (P)	28.00	6.89	0.70	5.54	8.07
Competitor Price (Px)	28.00	6.19	0.82	5.10	7.68
Advertising (Ad)	28.00	247665.86	29503.52	206647.00	296246.00
Income (I)	28.00	50881.43	2849.10	46017.00	55454.00

b.

SUMMARY OUTPUT

Regression Statistics
Multiple R	0.9308
R Square	0.8664
Adjusted R Square	0.8432
Standard Error	13868.2389
Observations	28

ANOVA
	df	SS	MS	F	Significance F
Regression	4.000	28692838225.528	7173209556.382	37.297	0.000
Residual	23.000	4423545125.186	192328048.921
Total	27.000	33116383350.714

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	93833.8877	66959.6608	1.4013	0.1745	-44682.7242	232350.4995
Price (P)	-19432.5811	3931.9650	-4.9422	0.0001	-27566.4704	-11298.6919
Competitor Price (Px)	17711.9806	3359.2803	5.2726	0.0000	10762.7798	24661.1814
Advertising (Ad)	0.2869	0.0940	3.0510	0.0057	0.0924	0.4815
Income (I)	8.9996	0.9625	9.3505	0.0000	7.0086	10.9906

All of the variables are significant as the P-value is less than 0.05

c. Q= 93833.89-19432.58P+17711.98*Px+0.2869*Ad+8.99*I

D. Own price is negatively related with Qd . With one unit increase in price, the Qd decreases by 19433 units

E. For $2 increase in the predicted impact on sales Qd would decrease by -19432.58*2 = 38865 units

Rahul Sunny answered 1 hour ago

1. Total market demand for pillows in San Francisco is given by P = 125 -...

1. Total market demand for pillows in San Francisco is given by P = 125 - 0.5Q. There are 2 suppliers of pillows in the market, who each have a constant marginal cost of $5 per pillow. If the 2 firms collude together and act as a monopolist, they will sell ____________ pillows at a price of $ _______________. 2. Total market demand for pillows in San Francisco is given by P = 125 - 0.5Q. There are 2 suppliers of...

Total market demand for pillows in San Francisco is given by P = 125 - 0.5Q....

Total market demand for pillows in San Francisco is given by P = 125 - 0.5Q. There are 2 suppliers of pillows in the market, who each have a constant marginal cost of $5 per pillow. Assuming no fixed costs, if the 2 firms compete against each other in a Cournot duopoly, how much lower will the 2 firms' combined profits be compared to if they colluded and acted as a monopoly? (Write answer without a negative sign and without...

Given the following information for a monopolistic competitor: Demand: P = 78 – 5(Q) Marginal revenue:...

Given the following information for a monopolistic competitor: Demand: P = 78 – 5(Q) Marginal revenue: MR = 78 – 10(Q) Marginal cost: MC = 2(Q) + 10 Average total cost at equilibrium is 14 1. At what output (Q) will this firm maximize profit? _____ 2. At what price (P) will this firm maximize profit? _______ 3. What is the total revenue (TR) earned at this output level? _____ 4. What is the total cost (TC) accrued at this...

the demand is given by p= 140-4Q Where P is the price and Q is the...

the demand is given by p= 140-4Q Where P is the price and Q is the quantity demanded. Find the price at which the own price elasticity is -3. (round to 2 decimals)

Dana's monthly demand curve for the gym is: p=10-q where p is the price and q...

Dana's monthly demand curve for the gym is: p=10-q where p is the price and q is the quantity. The market price for a single visit is 3 RMB. Monthly membership (you can enter the gym for free if you have the membership) cost 22 RMB. Should Dana pay for the monthly membership? Prove.

Bridgeman Company, headquartered in San Francisco, reported the following data for the current year. Net income,...

Bridgeman Company, headquartered in San Francisco, reported the following data for the current year. Net income, $2,220,000. Common shares outstanding at the beginning of the year, 800,000. Nonconvertible cumulative preferred stock, $100 par, $8 dividend per share per year, 100,000 shares outstanding all year. Issued 200,000 shares of common stock on October 1. Convertible cumulative preferred stock, $100 par, $7 dividend per share per year, 50,000 shares outstanding at the beginning of the year. On March 31, 20,000 shares of...

Suppose that the market demand is given by Q(p)=200-5p. Let p(q) be the maximal price at...

Suppose that the market demand is given by Q(p)=200-5p. Let p(q) be the maximal price at which the agents would buy q units, i.e., the inverse demand function. Then? a. p(q)=40-5q b. p(q)=40-0.2q c. p(q)=40-0.4q d. p(q)=200-10q e. p(q)=200-5q

A monopolist faces a demand curve of Q = 164 – P, where P is price...

A monopolist faces a demand curve of Q = 164 – P, where P is price and Q is the output produced by the monopolist. What choice of output will maximize revenue? Group of answer choices 70 74 82 86 if monopolist produces good X and faces a demand curve X = 112 - 2P, where P is price. What is the monopolist's marginal revenue as a function of good X? Group of answer choices 44 - X 56 -...

[Income and Cross Price Elasticity of Demand] (a) Given Q = 700?2P+0.02Y, where P = 25,...

[Income and Cross Price Elasticity of Demand] (a) Given Q = 700?2P+0.02Y, where P = 25, and Y = 5000. Find (a) the price elasticity of demand and (b) the income elasticity of demand. (b) Given Q1 = 100?P1 +0.75P2 ?0.25P3 +0.0075Y. At P1 = 10, P2 = 20,P3 = 40 and Y = 10000, Q1 = 170. The cross price elasticity of demand for good 1 when price of good 2 is changing is given by ?12 = ?Q1...

The demand function for a good is Q=1200-P while the supply functions is Q=-200+P. World price...

The demand function for a good is Q=1200-P while the supply functions is Q=-200+P. World price is $300 and the nation is is imposing a quota of 200 units. a. Graph the demand and supply function to scale and label axis and intercepts. b. Determine the quantity demanded before and after the quota. c. Determine the quantity supplied before and after the quota. d. Determine the quantity imported before and after the quota. e. Determine the consumer surplus before and...

Question