A first year student estimated a linear consumption function and found out that Ct = 200 + 0.65Yc + 0.25 Ct t-1. Give economic interpretation of the above result, clearly explaining the meaning of the intercept, variables and the coefficients.
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A first year student estimated a linear consumption function and found out that Ct = 200 + 0.65Yc + 0.25 Ct t-1. Give economic interpretation of the above result, clearly explaining the meaning of the intercept, variables and the coefficients.
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- The revenue (in dollars) from the sale of x car seats for infants is given by the following function. R(x) = 56x – 0.020x? 0sxs 2800 (A) Find the average change in revenue if production is changed from 1,000 car seats to 1,050 car seats. (B) Use the four-step process to find R'(x). (C) Find the revenue and the instantaneous rate of change of revenue at a production level of 1,000 car seats, and interpret the results. (A) Find the average change in revenue if production is changed from 1,000 car seats to 1,050 car seats. (Round to one decimal place as needed.) (B) R'(X) = (C) R(1000) = R'(1000) = Interpret these results. Choose the correct answer below. O A. This means that at a production level of 1,000 car seats, the revenue is R(1000) dollars and is decreasing at a rate of R'(1000) dollars per seat. O B. This means that at a production level of 1,000 car seats, the revenue is R'(1000) dollars and is increasing at a rate of R(1000) dollars per seat. O c. This means that at a…potter makes and sells ceramic bowls. It is observed that when the price is $32, only 9 bowls are sold in a week; but when the price decreases to $10, weekly sales rise to 20. Assuming that demand can be modelled by a linear function, (a) obtain a formula for Pin terms of Q (b) Calculate for the slope of the curve if the relationship between p and Q is linear. (c) comment on the likely reliability of the modelX(t) is a wide sense stationary stochastic process with autocorrelation function sin(271000r) R„(T)=10- 271000r The process Y(t) is a version of X(t) delayed by 50 micro seconds. {Y(t) = X(t - t0)} (a) Derive the autocorrelation function of Y (t). (b) Derive the cross-correlation function of X(t) and Y (t). (c) Are X(t) and Y (t) jointly wide sense stationary? IUnloaded File Details
- If Qd= 20-0.5P, find the slope of the function ?All questions utilize the multivariate demand function for Smooth Sailing sailboats in C6 on text page 83. Compute to three decimal places. Initial values are: PX = $9500 PY = $10000 I = $15000 A = $170000 W = 160 This function is: Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W 1.(a). Use the above to calculate the arc price elasticity of demand between PS = $9000 decreasing to PS = $8000. The arc elasticity formula is: 1.(b). Judging from the computation in (a), do you expect the revenue resulting from the decrease in Ps to $8000 to increase, remain the same, or decrease relative to the revenue at Ps = $9000. (Hint: see the table on page 65 of Truett). Explain your choice. 1.(c). Calculate the point elasticity of demand for Smooth Sailing sailboats at PS = $9000 (which should make Qs = 101600). The formula is: 1.(d). Does this elasticity value indicate that Smooth Sailing demand is relatively responsive to changes in the price of these sailboats? Explain…The trade-in value, V, of a certain model of automobile can be determined using the function V(x)=25000-0.25x, where x is the mileage. Which of the following statements is the best interpretation of the slope? * The trade-in value of the car decreases $1 for every additional 4 miles driven. The trade-in value of the car decreases $4 for every additional mile driven. The value of the car increases as the mileage increases. The selling price of the car when it is new is $25,000.
- The revenue (in dollars) from the sale of x car seats for infants is given by the following function. R(x)=64x-0.020x² 0≤x≤3200 (A) Find the average change in revenue if production is changed from 1,000 car seats to 1,050 car seats. (B) Use the four-step process to find R'(x). (C) Find the revenue and the instantaneous rate of change of revenue at a production level of 1,000 car seats, and interpret the results. ... (A) Find the average change in revenue if production is changed from 1,000 car seats to 1,050 car seats. 23 (Round to one decimal place as needed.) (B) R'(x) =Consider the output here from a regression in R. What is 3₂? Coefficients: Estimate (Intercept) 1.708 5.404 -1.478 9.531 X1 X2 X3 Std. Error 0.555 2.792 0.6 2.758Define the Ordinary Least Square estimator is linear and conditionally unbiased?
- Given the functional relationship: y = 14x5/x2 find the value of y when x = 1.5Advertising A small manufacturing firm collected the following data on advertising expenditures A (in thousands of dollars) and total revenue R (in thousands of dollars). (a) Draw a scatter diagram of the data. Comment on the type of relation that may exist between the two variables (b) The quadratic function of best fit to these data is R(A) = - 7.76A2 + 411.88A + 942.72 Use this function to determine the optimal level of advertising. (c) Use the function to predict the total revenue when the optimal level of advertising is spent. (d) Use a graphing utility to verify that the function given in part (b) is the quadratic function of best fit. (e) Use a graphing utility to draw a scatter diagram of the data, and then graph the quadratic function of best fit on the scatter diagram.According to the following given information how to determine: Production Times (months) 1 9 10 11 12 13 14 15 product of 970 1,180 1,239 1,293 1,350 1,398 1,410 1,480 1,492 1,500 1,520 1,592 1,605 1,660 1,685 (Z unit) A) Break Even-point or points? B) How is to construct the relationship between entire variables through the simple drawing for all above figures and highlighting of Break Even point the drawing? C) Justify your final answer for each line of production.
