I’m studying and need help with a Economics question to help me learn.
1.The data in Table 5.3 is provided in the Excel file MBA730_New Use this data to replicate the results in Table 5.4. Report your results and note any discrepancies with the text.
2.Now use the data from Table 5.3 to estimate a multiplicative demand function for Mrs. Smyth’s frozen fruit pies. Report your parameter estimates and regression statistics for the multiplicative model.
a)Describe the statistical significance of each of the independent variables included in the Mrs. Smyth’s demand equation. Interpret the coefficient of determination and F statistic for the multiplicative model.
b)Compare the statistical properties of your multiplicative model with the linear model. Which fits the data better? Explain why.
c)In the multiplicative model perform a statistical test to determine whether demand is elastic, your competitor’s product is a substitute, and if pies are a normal good at the 95 percent confidence level.
d)What is your estimate of the price elasticity of demand, advertising elasticity of demand, income elasticity of demand, and cross price elasticity of demand in the multiplicative model? Compare these elasticity estimates with the corresponding elasticities in the linear model when calculated at mean values for each variable.
e) Using the linear model, what is the expected value of next quarter’s unit sales in the Minneapolis-St. Paul, MN market? Use the value of each independent variable for the last period in the MN market for this forecast. Derive the 95 percent confidence interval for next quarter’s actual sales in the Minneapolis- St. Paul market.
3.The data in Table 8.2, p. 328 in the text is given in the Excel file COST_2. Use this data to replicate Table 8.3. Report your results and note any discrepancies with the text. Then answer parts A- D in the case study on p. 329
a)Interpret the coefficient of determination (R2) estimated for the nursing cost function.
b)Describe the economic and statistical significance of each estimated coefficient in the nursing cost function.
c)Average nursing costs for the 8 for-profit hospitals in the sample are only $318.52 per patient day, or $33.07 per patient day less than the $351.59 average cost experienced by the 32 not-for-profit hospitals. How can this fact be reconciled with the estimated coefficient of −39.156 for the for-profit status variable?
d)Would such an approach for nursing cost estimation have practical relevance for publicly funded nursing cost reimbursement systems?