Answered You can buy a readymade answer or pick a professional tutor to order an original one.
One of the leading laptop manufacturers has estimated the following demand equation based on the data from its 50 branch offices and dealerships across the country:Q = + 10,000 – 60P + 300A + 50 c P
One of the leading laptop manufacturers has estimated the following demand equation based on the data from its 50 branch offices and dealerships across the country:
Q = + 10,000 – 60P + 300A + 50 c P  100 C A +50 I
(7400) (25) (120) (22) (68) (28)
R2 = 0.74 F = 28.56
The variables and their assumed values are
Q = Quantity
P = Price of basic model = 500
A =Advertising expenditures = 50
c P price of the competitor’s product = 600
C A = competitor’s advertising expenditures = 30
I = per capita income = 75
a. Compute the elasticities for each variable. On this basis, discuss the relative impact that each variable has on the demand. What implications do these results have for the firm’s marketing and pricing policies?
b. How concerned the company should be about the impact of a recession on its sales? Explain.
c. Do you think the firm should cut its price to increase market share? Explain.
d. Conduct a ttest for the statistical significance of each variable. Discuss the results of the ttests in light of the policy implications mentioned.
e. What proportion of the variation in sales is explained by the independent variables in the
equation? How confident are you about this answer? Explain
 @
 164 orders completed
 ANSWER

Tutor has posted answer for $20.00. See answer's preview
*** of the leading ****** ************* has ********* *** ********* demand equation based on *** data from *** ** ****** ******* *** *********** ****** the ********* * * 10000 – *** * 300A * ** c * * *** * * +50 I(7400) (25) ***** (22) **** ****** * *** * * 2856The ********* *** their ******* values areQ = QuantityP * ***** ** basic model * **** ************ expenditures * 50c * ***** ** *** competitor’s ******* * **** A * ************** advertising expenditures * *** * *** ****** ****** * *** Compute *** ************ *** **** variable ** this basis discuss *** ******** impact **** **** ******** has ** *** demand **** ************ ** ***** ******* have *** *** firm’s ********* and ******* *********************** *** each ******** **************** * ******** coefficientSo *** = ******** *********** * ******** initial *********** * 60X500/QQ= 1000060x500+300x50+50x600100x30+50x75 = * ********* * ************* = 117PEDPX * 300x50/25750 * ******** 50x600/25750 * ******** ************* = ********* 50x75/25750 = 15There ** ******** elasticity ******* *********** advertising *** ****** ******* there ** ******** ********** *** **** of *** ********** *** ********* the ******* ****** ** ***** *** ****** ** a ********* on its ****** ********************** the ********* *** ****** ******** ****** on per ****** ****** *** ***** *** ****** ********** ** ****** ***** a ***** above * (162) ** *** ******* ****** be **** ********* during ********* period as *** ****** **** decrease ** *** ***** **** ***** * unit decrease of per ****** ********* ** *** ***** *** **** ****** *** its price ** ******** market share? *********************** ******* the ***** will **** ** increase *** company ***** ** *** ***** ********** of demand ** ****** **** * ******** **** ********** ** *** ********* in ***** ** explained ** *** independent ********* ** theequation? *** ********* *** *** ***** **** ******* *********************** ** variation ** sales is ********* ** the *********** ********* ******* of *** value ** ****** at *** confidence ************* *** ***** of R2=074 ** **** *** so ** ****** **** *** Fvalue ** *** ** ****** that the ***** ******** ** ************** ********* * **** by *** software 2856 ** ****** **** *** ********** * * 243 so *** ******** ** ************* *********** *** ***** must be ***** ********* ****** *** ****** *** *** ***** ** *** ******** *** **** ******* *** low * ** ****