In: Economics

# You work for SneauxCeauxne, the Cajun-inspired crushed-ice dessert company. You’ve collected data on monthly sales (S,...

You work for SneauxCeauxne, the Cajun-inspired crushed-ice dessert company. You’ve collected data on monthly sales (S, number of snow-cones per month) and the price of your regular-size snow-cone (P, in dollars), as well as the daily average summer temperature in your most popular market (T, in degrees Fahrenheit). You estimate the following regression model: S = a + bP + cT. In your regressions, you usually look for a 10%-or-better level of confidence.

a.   What signs do you expect for a, b, and c?

b.   Your regression yields the following results:

 Adjusted R Square 0.883 Independent Variables Coefficients Standard Error t Stat P-value Intercept 2718 598 4.544 0.00615 P -641.62 90.23 -7.111 0.00085 T 10.32 6.36 1.623 0.16562

Interpret what these coefficients mean.

c.   Does price have a statistically significant effect on sales?

d.   Does average temperature have a statistically significant effect on sales?

e.   What portion of the total variation in sales remains unexplained?

##### You’ve collected the following information about Erna, Inc.: Sales = $285,000 Net income =$...
You’ve collected the following information about Erna, Inc.: Sales = $285,000 Net income =$ 17,800 Dividends = $6,600 Total debt =$ 61,000 Total equity = \$ 92,000 What is the sustainable growth rate for the company? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate 12.17 % Assuming it grows at this rate, how much new borrowing will take place in the coming...
##### A retail company must file a monthly sales tax report listing the total sales for the month, and the amount of state and county sales tax collected.
A retail company must file a monthly sales tax report listing the total sales for the month, and the amount of state and county sales tax collected. The state sales tax rate is 5 percent and the county sales tax rate is 3 percent. Create a GUI application that allows the user to enter the total sales for the month into a text field. From this figure, the application should calculate and display the following: The number of county sales tax...