Exam 3: Topics in Demand Analysis and Estimation

A market survey is a questionnaire, either filled out by respondents or administered by an interviewer, which provides information on how consumers actually react to certain changes in demand variables.

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(True/False)

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Question 1

Correct Answer:

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False

A log form demand function for carpet was estimated with the following results:

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(Essay)

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Question 2

Correct Answer:

Verified

Where Q = square feet of carpet
P = Price of carpet
W = average price of wood flooring
Y = Median Income
R = average size of housing units
Given the above information, as income increases, people will buy less carpet.
True

Using linear regression analysis, Tim's Home Supply Company estimated its demand function for paint with the following results.

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(Essay)

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Question 3

Correct Answer:

Verified

Where:
Q_P = Gallons of paint sold per year at Tim's
P_P = price per gallon of paint
P_W = price of wallpaper
Y = Average annual household income
Given the above information, wallpaper is a substitute good for paint.
True

A log form demand function for carpet was estimated with the following results: Where Q = square feet of carpet P = Price of carpet W = average price of wood flooring Y = Median Income R = average size of housing units Using the above information:

(Multiple Choice)

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Question 4

Management must be careful in its use of statistically estimated demand functions because variables that are related statistically do not necessarily have a cause-effect relationship to one another and because important variables may have been excluded.

(True/False)

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Question 5

Multiple regression analysis is a statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between:

(Multiple Choice)

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Question 6

R², the coefficient of determination, measures the proportion of the total variation in the dependent variable that is "explained" by the variation of the independent variables).

(True/False)

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Question 7

A statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between several dependent variables and more than one independent variable is called multiple regression.

(True/False)

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Question 8

R², the coefficient of determination, does not necessarily mean that variation in the independent variables) caused the variation in the dependent variable.

(True/False)

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Question 9

Which of the following is NOT a practical strategy for small businesses to assess market demand:

(Multiple Choice)

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Question 10

Market surveys can be quite useful when questionnaires do not call for very fine discrimination by the respondents.

(True/False)

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Question 11

While limited in terms of what kind of information can be determined, large-scale market surveys:

(Multiple Choice)

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Question 12

When R²= .95 this means that independent variables are not just correlated, but that they caused 95% of the variation in the independent variables.

(True/False)

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Question 13

Using linear regression analysis, Tim's Home Supply Company estimated its demand function for paint with the following results. Where: Q_P = Gallons of paint sold per year at Tim's P_P = price per gallon of paint P_W = price of wallpaper Y = Average annual household income Given the above information:

(Multiple Choice)

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Question 14

Developing an accurate mathematical expression for a demand function is a matter of:

(Multiple Choice)

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Question 15

Market surveys can be quite useful when:

(Multiple Choice)

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Question 16

One of the problems with market experiments is that there are almost always some relevant variables that the experimenters cannot control.

(True/False)

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Question 17

Regression analysis is a statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between a dependent variable and one or more independent variables.

(True/False)

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Question 18

In a market experiment, those variables that are anticipated to be determinants of the quantity sold of a product are:

(Multiple Choice)

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Question 19

Linear regression analysis is a statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between:

(Multiple Choice)

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Question 20

Showing 1 - 20 of 37

A market survey is a questionnaire, either filled out by respondents or administered by an interviewer, which provides information on how consumers actually react to certain changes in demand variables.

A log form demand function for carpet was estimated with the following results:

Using linear regression analysis, Tim's Home Supply Company estimated its demand function for paint with the following results.

A log form demand function for carpet was estimated with the following results: Where Q = square feet of carpet P = Price of carpet W = average price of wood flooring Y = Median Income R = average size of housing units Using the above information:

Management must be careful in its use of statistically estimated demand functions because variables that are related statistically do not necessarily have a cause-effect relationship to one another and because important variables may have been excluded.

Multiple regression analysis is a statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between:

R², the coefficient of determination, measures the proportion of the total variation in the dependent variable that is "explained" by the variation of the independent variables).

A statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between several dependent variables and more than one independent variable is called multiple regression.

R², the coefficient of determination, does not necessarily mean that variation in the independent variables) caused the variation in the dependent variable.

Which of the following is NOT a practical strategy for small businesses to assess market demand:

Market surveys can be quite useful when questionnaires do not call for very fine discrimination by the respondents.

While limited in terms of what kind of information can be determined, large-scale market surveys:

When R²= .95 this means that independent variables are not just correlated, but that they caused 95% of the variation in the independent variables.

Developing an accurate mathematical expression for a demand function is a matter of:

Market surveys can be quite useful when:

One of the problems with market experiments is that there are almost always some relevant variables that the experimenters cannot control.

Regression analysis is a statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between a dependent variable and one or more independent variables.

In a market experiment, those variables that are anticipated to be determinants of the quantity sold of a product are:

Linear regression analysis is a statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between:

Introduction, Basic Principles, and Methodology

Revenue of the Firm

Economic Forecasting

Production Analysis

Cost of Production

Profit Analysis of the Firm

Perfect Competition and Monopoly

Monopolistic Competition and Oligopoly

Games, Information and Strategy

Topics in Pricing and Profit Analysis

Factor Markets

Fundamentals of Project Evaluation

Risk in Project Analysis

Economics of Public Sector Decisions

Legal and Regulatory Environment of the Firm

Filters

Exam 3: Topics in Demand Analysis and Estimation

A market survey is a questionnaire, either filled out by respondents or administered by an interviewer, which provides information on how consumers actually react to certain changes in demand variables.

A log form demand function for carpet was estimated with the following results:

Using linear regression analysis, Tim's Home Supply Company estimated its demand function for paint with the following results.

A log form demand function for carpet was estimated with the following results: Where Q = square feet of carpet P = Price of carpet W = average price of wood flooring Y = Median Income R = average size of housing units Using the above information:

Management must be careful in its use of statistically estimated demand functions because variables that are related statistically do not necessarily have a cause-effect relationship to one another and because important variables may have been excluded.

Multiple regression analysis is a statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between:

R2, the coefficient of determination, measures the proportion of the total variation in the dependent variable that is "explained" by the variation of the independent variables).

A statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between several dependent variables and more than one independent variable is called multiple regression.

R2, the coefficient of determination, does not necessarily mean that variation in the independent variables) caused the variation in the dependent variable.

Which of the following is NOT a practical strategy for small businesses to assess market demand:

Market surveys can be quite useful when questionnaires do not call for very fine discrimination by the respondents.

While limited in terms of what kind of information can be determined, large-scale market surveys:

When R2 = .95 this means that independent variables are not just correlated, but that they caused 95% of the variation in the independent variables.

Using linear regression analysis, Tim's Home Supply Company estimated its demand function for paint with the following results. Where: QP = Gallons of paint sold per year at Tim's PP = price per gallon of paint PW = price of wallpaper Y = Average annual household income Given the above information:

Developing an accurate mathematical expression for a demand function is a matter of:

Market surveys can be quite useful when:

One of the problems with market experiments is that there are almost always some relevant variables that the experimenters cannot control.

Regression analysis is a statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between a dependent variable and one or more independent variables.

In a market experiment, those variables that are anticipated to be determinants of the quantity sold of a product are:

Linear regression analysis is a statistical technique used to "fit" an equation to empirical data in order to estimate the relationship between:

Introduction, Basic Principles, and Methodology

Revenue of the Firm

Economic Forecasting

Production Analysis

Cost of Production

Profit Analysis of the Firm

Perfect Competition and Monopoly

Monopolistic Competition and Oligopoly

Games, Information and Strategy

Topics in Pricing and Profit Analysis

Factor Markets

Fundamentals of Project Evaluation

Risk in Project Analysis

Economics of Public Sector Decisions

Legal and Regulatory Environment of the Firm

Filters

R², the coefficient of determination, measures the proportion of the total variation in the dependent variable that is "explained" by the variation of the independent variables).

R², the coefficient of determination, does not necessarily mean that variation in the independent variables) caused the variation in the dependent variable.

When R²= .95 this means that independent variables are not just correlated, but that they caused 95% of the variation in the independent variables.