Exam 3: Measuring and Using Demand

Using Excel, Tough Scrubbers estimates the quarterly demand for their kitchen sponges to be Q^d = 5,600 - (25 × P). If the actual demand for their kitchen sponges is 5,600 when a price of $1 per sponge is charge, what is the estimated residual?

Using Excel, Tough Scrubbers estimates the quarterly demand for their kitchen sponges to be Q^d = 5,600 - (25 × P). If the actual demand for their kitchen sponges is 5,400 when a price of $5 per sponge is charge, what is the estimated residual?

If the estimated slope coefficient is = - 2.45 and the standard error for the slope coefficient is 1.75, which of the following is true using a 95 percent confidence level?

If the price elasticity of demand for Clean Sheets laundry detergent is 1.50, a 5 percent decrease in the price will lead to which of the following?

The first step in interpreting the results from a regression is _________ .

Using Excel, the manager of Quick Breaks Coffees has estimated the daily demand function for its regular coffees; the results are shown in the table above. Which of the following statements is correct?

If a 2 percent decrease in the price of a good leads to a 6 percent increase in the quantity demanded, the price elasticity of demand for the good equals ________.

The price elasticity for insulin (a life- saving drug for diabetics)is likely to be________ .

When managers use Ordinary Least Squares to estimate a regression equation, the estimated regression equation is as close to the actual data values as possible.

If Excel estimated the 95 percent confidence interval for a slope coefficient for the price to run from - 15.50 to - 12.30, which of the following is true?

The price elasticity of demand for Best Paints one gallon sized paint cans is 0.79. If Best Paints increased the price of their gallon sized paint cans by 10 percent, which of the following is expected to occur?

Suzie's Bagels is a breakfast deli located on a university campus. Suzie wants to use regression analysis to estimate the demand for her bagel sandwiches. Suzie has collected daily data on the quantity of bagel sandwiches sold over the last year. In order to correctly specify the regression, all of the following variables should be considered except which one?

If the price elasticity of demand for Clean Sheets laundry detergent is 0.50, a 2 percent increase in the price will lead to which of the following?

Using Excel, the manager of Quick Breaks Coffees has estimated the daily demand function for its regular coffees; the results are shown in the table above. Using 95 percent confidence, the P- value for the slope coefficient on price suggests which of the following is true?

If the estimated slope coefficient = - 2.50 and the standard error for the slope coefficient is 0.50, which of the following is true?

Using Excel, Tough Scrubbers estimates the quarterly demand for their kitchen sponges to be Q^d = 5,600 - (25 × P). If the actual demand for their kitchen sponges is 5,563 when a price of $3 per sponge is charge, what is the estimated residual?

You are the owner of a boutique clothing store and estimate the price elasticity of demand for your clothing to be 2.50 and the income elasticity of demand for your clothing to be 1.55. An upcoming economic expansion is expected to increase consumer incomes by 5 percent. As a result of the economic expansion, which of the following should you expect to occur?

Big City Java is a local coffee bar. Using Excel, the manager of Big City Java estimates the weekly demand function for their grand mocha coffees to be Q^d = 650 - (15.25 × P). The estimated regression equation suggests which of the following is true?

An hypothesis test using 99 percent confidence has a significance level equal to ________.

Using Excel, Best Paints estimates the log- linear weekly demand function for their gallon sized paints to be ln Q^d = 16.23 - (1.85 ×ln P); at a price of $35, the predicted quantity is 15,562.29.