Question
In: Statistics and Probability
Below is the regression of units sold on the average price of the product. Regression Statistics...
Below is the regression of units sold on the average price of the product.
|
Regression Statistics |
||||||
|
Multiple R |
0.2461 |
|||||
|
R Square |
0.2000 |
|||||
|
Adjusted R Square |
0.1649 |
|||||
|
Standard Error |
26.128 |
|||||
|
Observations |
20 |
|||||
|
ANOVA |
||||||
|
Df |
SS |
MS |
F |
Significance F |
||
|
Regression |
1 |
3080.89 |
3080.89 |
4.51 |
0.0478 |
|
|
Residual |
18 |
12288.31 |
682.68 |
|||
|
Total |
19 |
15369.20 |
||||
|
Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
|
|
Intercept |
614.9300 |
51.2343 |
12.002 |
0.0000 |
507.2908 |
722.5692 |
|
X |
-109.1120 |
51.3623 |
-2.124 |
0.0478 |
-217.0202 |
-1.2038 |
- What is the estimated regression equation?
- What is the intercept of the simple linear regression model. Interpret the intercept.
- Interpret the slope coefficient.
- Test whether the slope coefficient is significant at 1%?
- What is the lowest significance level at which the slope coefficient will be significant?
- Did your estimated regression equation provide a good fit? How strong is the relationship?
- What is your residual when average price is $2.00?
- What is the estimated number of units sold if the average price is $2.50?
Solutions
orchestra answered 3 years agoRelated Solutions
Luxvano Co. produced and sold 65,000 units during the year at an average price of $20...
Luxvano Co. produced and sold 65,000 units during the year at an
average price of $20 per unit. Variable manufacturing costs were $9
per unit, and variable marketing costs were $3 per unit sold. Fixed
costs amounted to $220,000 for manufacturing and $80,000 for
marketing. There was no year-end work-in-process inventory. Assume
the income tax rate of 40%.
REQUIRED: (Show your detailed computations!)
a. Compute Luxvano’s break-even point in sales dollars for the
year.
b. Compute the margin of safety...
Luxvano Co. produced and sold 65,000 units during the year at an average price of $20...
Luxvano Co. produced and sold 65,000 units during the year at an
average price of $20 per unit. Variable manufacturing costs were $9
per unit, and variable marketing costs were $3 per unit sold. Fixed
costs amounted to $220,000 for manufacturing and $80,000 for
marketing. There was no year-end work-in-process inventory. Assume
the income tax rate of 40%.
(SHOW WORK)
a. compute luvano's break-even point in sales dollars for the
year
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ABC Manufacturing expects to sell 1,025 units of product in 2021 at an average price of...
ABC Manufacturing expects to sell 1,025 units of
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The Chief Marketing Officer forecasts growth of 50
units per year through 2025. So, the demand will be 1,025 units in
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ABC Manufacturing expects to sell 1,025 units of product in 2021 at an average price of...
ABC Manufacturing expects to sell 1,025 units of
product in 2021 at an average price of $100,000 each based on
current demand.
The Chief Marketing Officer forecasts growth of 50
units per year through 2025. So, the demand will be 1,025 units in
2021, 1,075 units
in 2022, etc. and the $100,000 price will remain
consistent for all five years of the investment life. However, ABC
cannot produce more
than 1,000 units annually based on current
capacity.
In order to...
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Last year, Alpha Company sold 3,600 units of a single product at
a price of $100 per unit. The company variable cost per unit was
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Product 2
Units sold
10,000
20,000
Price
$20
$15
Variable cost per unit
$10
$10
Direct fixed cost
$35,000
$75,000
Common fixed cost totaled $46,000. Garrett allocates common
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