Demand Estimation and Forecasting, homework help College Paper Lab | collegepaperslab.com

Business Finance

Demand Estimation and Forecasting, homework help College Paper Lab | collegepaperslab.com

Demand Estimation and Forecasting

You are a manger of a large automobile dealership who wants to learn more about the effectiveness of various discount offered to customers over the past 14 months. Following are the average negotiated prices for each month and the quantities sold of a basic model (adjusted for various options) over this period of time.

  1. Graph this information on a scatter plot, estimate the demand equation. What do the regression results indicate about the desirability of discounting the price? Explain.

 

Month

Price

Quantity

January

$12,500

15

February

$12,200

17

March

$11,900

16

April

$12,000

18

May

$11,800

20

June

$12,500

18

July

$11,700

22

August

$12,100

15

September

$11,400

22

October

$11,400

25

November

$11,200

24

December

$11,000

30

January

$10,800

25

February

$10,000

28

2. What other factors besides price might be included in this equation? Do you foresee any difficulty in obtaining these additional data or incorporating them in the regression analysis?

College Paper Lab

Place your Order Today

- collegepaperslab.com