3. (Parts a, b, and c, are each worth 10 points; part d. is worth 5 points) A student in an MBA program has studied a lo

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3 Parts A B And C Are Each Worth 10 Points Part D Is Worth 5 Points A Student In An Mba Program Has Studied A Lo 1 (39.77 KiB) Viewed 251 times

3. (Parts a, b, and c, are each worth 10 points; part d. is worth 5 points) A student in an MBA program has studied a local manufacturing company as a class project. She has analyzed quarterly sales for the past six years. Regression results on sales have resulted in the following specification: InQ 2-1.25InP+1.5lmY+0.67lnS (91) (55) R¹-611 (84) (36) # where Qunit sales, P price in dollars, Y- an index of regional income, and S-the price charged by a rival firm. Standard errors are in parentheses. a. Rewrite this equation (including numbers) to transform it out of the log-log form and back into multiplicative form. Determine which (if any) of the variables are significant determinants of sales. You may use rules of thumb. Explain whether or not you are satisfied with the model overall. 102, and S-$12.50. Determine the firm's predicted Suppose that P = $15, sales. Is demand elastic? Explain. b. C. d.