You’ve just performed a linear regression on the quantity of athletic socks sold during sales targeting customers who have made New Year’s resolutions to get fit. If you have an intercept of 821 and a slope of -25, how many socks would you estimate will be sold when the price is $6?

 
 
 
 
 
 

Using the formula US = a + b*Pi, you’ve correctly estimated that the number of socks sold at $6 is 671.

Other Questions Of This Category

You've just performed a linear regression on the quantity of athletic shirts sold during sales targeting customers who have made New Year's resolutions to get fit. If you have an intercept of 943 and…

Take a look at the data output of a linear regression where the quantity of rib eye steaks sold is modeled as a function of its price, the price of chicken, disposable income, and a time trend. Using…

You are the meat manager for a large grocery chain and need to set the retail price for the next month of the data (month 56). If the wholesale price of rib eye steak is $4.00 per pound, the price of…

Imagine you are a marketing director at a large office supply chain. You've been asked to analyze sales of your store brand pencils compared to a name brand of pencils. You've gathered sales data and…

Imagine you are a marketing director at a large office supply chain. You've been asked to analyze sales of your store brand pencils compared to a name brand of pencils. You've gathered sales data and…

Look at the data output of the linear regression of rib eye steaks and chicken again. What is the cross-price elasticity of rib eye steaks with the price of chicken?

Demand Schedule Price Quantity Sold Marginal Cost $200 100 $100 $175 250 $100 $150 400 $100 $125 600 $100 Using the demand schedule above, which price-quantity combination is most profitable for the…

Calculate the income elasticity of rib eye steaks using the data output below. Your team is gathering to discuss and better understand the income elasticity analysis. How would you explain the…

You are a manager for a small chain of power sport product stores. You and some colleagues have gathered data on motorcycle prices and sales for the past quarter. How will calculating price elasticity…

A video game company that charges $15 per year for a game subscription is thinking of increasing the subscription price to $25. The company believes that it will reduce its initial customer base by…

You own a stationery shop, and you've been struggling with pricing decisions. You acquire some items in your store and find those are easier to price because you can add a markup to the cost you pay.…

A small business owner is trying to determine a selling price for a new product in a line of vintage-inspired wooden toys. She's currently thinking of creating the product in-house for a cost of $18…

Imagine you work for a large distributor and are currently negotiating a distribution deal with a company that manufactures skateboards. Which of the following is the most advantageous strategy for…

You've been asked to find the selling price that allows for the best possible profit from a piece in a new men's clothing line. If you know the cost of the piece, how could you find the optimal…

Review: You've been hired to improve pricing strategies for a new and expensive children's shoe line. Your predecessor targeted primarily customers with high valuations for the clothing. How might you…