A computer manufacturer gathered average monthly sales from its 56 branch offices and dealers and estimated the following demand for its products: Q=15,000-2.8P +150 A +0.3 Pc+ 0.35 Pm +0.2 Pt (2.17) (0.85) (2.5) (2.05) (1.53) where: P is the price of basic model=$7000 A is advertising expenditures $52000 Pc average price of personal computer= $4000 Pm average price of minicomputer= $15000 Pt average price of leading competitor's workstation -$8000 the numbers in brackets are the t-statistics Which variable(s) are significant in influencing the demand for the above firm? O a. P, Pm and Pt O b. P, A and Pc Oc. P, Pc and Pm Od. A and Pc

A computer manufacturer gathered average monthly sales from its 56 branch offices and dealers and estimated the following demand for its products: Q=15,000-2.8P +150 A +0.3 Pc+ 0.35 Pm +0.2 Pt (2.17) (0.85) (2.5) (2.05) (1.53) where: P is the price of basic model=$7000 A is advertising expenditures $52000 Pc average price of personal computer= $4000 Pm average price of minicomputer= $15000 Pt average price of leading competitor's workstation -$8000 the numbers in brackets are the t-statistics Which variable(s) are significant in influencing the demand for the above firm? O a. P, Pm and Pt O b. P, A and Pc Oc. P, Pc and Pm Od. A and Pc

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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