《管理經(jīng)濟(jì)學(xué)》研究生教學(xué)PPT課件電子講義

Chapter1TheFundamentalsofManagerialEconomicsIntroductionThemanagerEconomicsManagerialeconomicsdefinedEconomicsofEffectiveManagementIdentifyinggoalsandconstraintsRecognizethenatureandimportanceofprofitsUnderstandincentivesUnderstandmarketsRecognizethetimevalueofmoneyUsemarginalanalysisLearningmanagerialeconomics1-2ChapterOverviewChapterOneIntroductionChapter1focusesondefiningmanagerialeconomics,andillustratinghowitisavaluabletoolforanalyzingmanybusinesssituations.Thischapterprovidesanoverviewofmanagerialeconomics.Howdoaccountingprofitsandeconomicprofitsdiffer?Whyisthedifferenceimportant?Howdomanagersaccountfortimegapsbetweencostsandrevenues?Whatguidingprinciplecanmanagersusetomaximizeprofits?1-3ChapterOverviewTheManagerApersonwhodirectsresourcestoachieveastatedgoal.Directstheeffortsofothers.Purchasesinputsusedintheproductionofthefirm’soutput.Directstheproductpriceorqualitydecisions.1-4IntroductionEconomicsThescienceofmakingdecisionsinthepresenceofscarceresources.Resourcesareanythingusedtoproduceagoodorservice,orachieveagoal.Decisionsareimportantbecausescarcityimpliestrade-offs.1-5IntroductionThestudyofhowtodirectscarceresourcesinthewaythatmostefficientlyachievesamanagerialgoal.Shouldafirmpurchasecomponents–likediskdrivesandchips–fromothermanufacturersorproducethemwithinthefirm?Shouldthefirmspecializeinmakingonetypeofcomputerorproduceseveraldifferenttypes?Howmanycomputersshouldthefirmproduce,andatwhatpriceshouldyousellthem?1-6IntroductionManagerialEconomicsDefinedBasicprinciplescomprisingeffectivemanagement:Identifygoalsandconstraints.Recognizethenatureandimportanceofprofits.Understandincentives.Understandmarkets.Recognizethetimevalueofmoney.Usemarginalanalysis.1-7EconomicsofEffectiveManagementEconomicsofEffectiveManagementTheNatureandImportanceofProfitsAtypicalfirm’sobjectiveistomaximizeprofits.AccountingprofitTotalamountofmoneytakeninfromsales(totalrevenue)minusthedollarcostofproducinggoodsorservices.EconomicprofitThedifferencebetweentotalrevenueandcostopportunitycost.OpportunitycostTheexplicitcostofaresourceplustheimplicitcostofgivingupitsbestalternative.1-8EconomicsofEffectiveManagementTheRoleofProfitsProfitPrinciple:Profitsareasignaltoresourceholderswhereresourcesaremosthighlyvaluedbysociety.1-9EconomicsofEffectiveManagement1-10PowerofInputSuppliersSupplierConcentrationPrice/ProductivityofAlternativeInputsRelationship-SpecificInvestmentsSupplierSwitchingCostsGovernmentRestraintsPowerofBuyersBuyerConcentrationPrice/ValueofSubstituteProductsorServicesRelationship-SpecificInvestmentsCustomerSwitchingCostsGovernmentRestraintsEntrySubstitutes&ComplementsIndustryRivalryConcentrationPrice,Quantity,Quality,orServiceCompetitionDegreeofDifferentiationLevel,Growth,andSustainabilityofIndustryProfitsEntryCostsSpeedofAdjustmentSunkCostsEconomiesofScaleNetworkEffectsReputationSwitchingCostsGovernmentRestraintsPrice/ValueofSurrogateProductsorServicesPrice/ValueofComplementaryProductsorServicesNetworkEffectsGovernmentRestraintsSwitchingCostsTimingofDecisionsInformationGovernmentRestraintsEconomicsofEffectiveManagementFiveForcesandIndustryProfitabilityUnderstandIncentivesChangesinprofitsprovideanincentivetohowresourceholdersusetheirresources.Withinafirm,incentivesimpacthowresourcesareusedandhowhardworkerswork.Oneroleofamanageristoconstructincentivestoinducemaximaleffortfromemployees.1-11EconomicsofEffectiveManagementTwosidestoeverymarkettransaction:Buyer.Seller.Bargainingpositionofconsumersandproducersislimitedbythreerivalriesineconomictransactions:Consumer-producerrivalry.Consumer-consumerrivalry.Producer-producerrivalry.Governmentandthemarket.1-12EconomicsofEffectiveManagementUnderstandMarketsTheTimeValueofMoneyOftenagapexistsbetweenthetimewhencostsareborneandbenefitsreceived.Managerscanusepresentvalueanalysistoproperlyaccountforthetimingofreceiptsandexpenditures.1-13EconomicsofEffectiveManagementPresentValueAnalysis1

1-14EconomicsofEffectiveManagementPresentValueAnalysisII

1-15EconomicsofEffectiveManagement

1-16EconomicsofEffectiveManagementTheTimeValueofMoneyinActionNetPresentValue

1-17EconomicsofEffectiveManagement

1-18EconomicsofEffectiveManagementPresentValueofIndefinitelyLivedAssetsProfitmaximizationprincipleMaximizingprofitsmeansmaximizingthevalueofthefirm,whichisthepresentvalueofcurrentandfutureprofits.1-19EconomicsofEffectiveManagementPresentValueandProfitMaximizationPresentValueandEstimatingValuesofFirmsI

1-20EconomicsofEffectiveManagement

1-21EconomicsofEffectiveManagementPresentValueandEstimatingValuesofFirmsIIShort-termandlong-termprofitsprincipleIfthegrowthrateinprofitsislessthantheinterestrateandbothareconstant,maximizingcurrent(short-term)profitsisthesameasmaximizinglong-termprofits.1-22EconomicsofEffectiveManagementShort-TermversusLong-termProfits

1-23EconomicsofEffectiveManagementMarginalAnalysis

1-24EconomicsofEffectiveManagementUsingMarginalAnalysisMarginalprincipleTomaximizenetbenefits,themanagershouldincreasethemanagerialcontrolvariableuptothepointwheremarginalbenefitsequalmarginalcosts.Thislevelofthemanagerialcontrolvariablecorrespondstothelevelatwhichmarginalnetbenefitsarezero;nothingmorecanbegainedbyfurtherchangesinthatvariable.1-25EconomicsofEffectiveManagementMarginalAnalysisPrincipleIMarginalPrincipleII

1-26EconomicsofEffectiveManagementMarginalAnalysisInAction

1-27EconomicsofEffectiveManagement1-28Quantity(ControlVariable)TotalbenefitsTotalcosts0

MaximumtotalbenefitsMaximumnetbenefitsEconomicsofEffectiveManagementDeterminingtheOptimalLevelofaControlVariable1-29Quantity(ControlVariable)Netbenefits0Maximumnetbenefits

EconomicsofEffectiveManagementDeterminingtheOptimalLevelofaControlVariableII1-30Quantity(ControlVariable)Marginalbenefits,costsandnetbenefits0

MaximumnetbenefitsEconomicsofEffectiveManagementDeterminingtheOptimalLevelofaControlVariableIII

1-31EconomicsofEffectiveManagementIncrementalDecisionsLearningManagerialEconomicsPractice,practice,practice…LearnterminologyBreakdowncomplexissuesintomanageablecomponents.Helpseconomicspractitionerscommunicateefficiently.1-32LearningManagerialEconomicsConclusionMakesureyouincludeallcostsandbenefitswhenmakingdecisions(opportunitycosts).Whendecisionsspantime,makesureyouarecomparingapplestoapples(presentvalueanalysis).Optimaleconomicdecisionsaremadeatthemargin(marginalanalysis).1-33ConclusionChapter2MarketForces:DemandandSupplyChapterOutlineDemandFactorsthatchangequantitydemandedanddemandThedemandfunctionConsumersurplusSupplyFactorsthatchangequantitysuppliedandsupplyThesupplyfunctionProducersurplusMarketequilibriumPricerestrictionsandmarketequilibriumPriceceilingsPricefloorsComparativestaticsChangesindemandChangesinsupplySimultaneousshiftsinsupplyanddemand2-35ChapterOverviewMarketdemandcurveIllustratestherelationshipbetweenthetotalquantityandpriceperunitofagoodallconsumersarewillingandabletopurchase,holdingothervariablesconstant.LawofdemandThequantityofagoodconsumersarewillingandabletopurchaseincreases(decreases)asthepricefalls(rises).2-36DemandDemandMarketDemandCurve2-37Quantity(thousandsperyear)Price($)Demand$400$30$202040$106080DemandChangingonlypriceleadstochangesinquantitydemanded.Thistypeofchangeisgraphicallyrepresentedbyamovementalongagivendemandcurve,holdingotherfactorsthatimpactdemandconstant.Changingfactorsotherthanpriceleadtochangesindemand.Thesetypesofchangesaregraphicallyrepresentedbyashiftoftheentiredemandcurve.2-38DemandChangesinQuantityDemandedChangesinDemand2-39Quantity0PriceD1IncreaseindemandDemandABD0D2DecreaseindemandDemandShiftersIncomeNormalgoodInferiorgoodPricesofrelatedgoodsSubstitutegoodsComplementgoodsAdvertisingandconsumertastesInformativeadvertisingPersuasiveadvertisingPopulationConsumerexpectationsOtherfactors2-40DemandAdvertisingandtheDemandforClothing2-41Quantityofhigh-styleclothing0$50$4050,000Priceofhigh-styleclothingD260,000DuetoanincreaseinadvertisingDemandD1ThedemandfunctionforgoodXisamathematicalrepresentationdescribinghowmanyunitswillbepurchasedatdifferentpricesforX,thepriceofarelatedgoodY,incomeandotherfactorsthataffectthedemandforgoodX.2-42DemandTheDemandFunction

2-43DemandTheLinearDemandFunction

2-44DemandUnderstandingtheLinearDemandFunction

2-45DemandTheLinearDemandFunctioninActionInverseDemandFunction

2-46DemandGraphingtheInverseDemandFunctioninAction2-47QuantityPrice

$2,02006,060DemandMarketingstrategies–likevaluepricingandpricediscrimination–relyonunderstandingconsumervalueforproducts.Totalconsumervalueisthesumofthemaximumamountaconsumeriswillingtopayatdifferentquantities.Totalexpenditureistheper-unitmarketpricetimesthenumberofunitsconsumed.Consumersurplusistheextravaluethatconsumersderivefromagoodbutdonotpayextrafor.2-48ConsumerSurplusDemandQuantityinlitersPriceperliterDemand$50$3$212$1452-49TotalConsumerValue:0.5($5-$3)x2+(3-0)(2-0)=$8Expenditures:$(3-0)x(2-0)=$6ConsumerSurplus:0.5($5-$3)x(2-0)=$2DemandMarketDemandandConsumerSurplusinAction$43ConsumerSurplusMarketsupplycurveSummarizestherelationshipbetweenthetotalquantityallproducersarewillingandabletoproduceatalternativeprices,holdingotherfactorsaffectingsupplyconstant.LawofsupplyAsthepriceofagoodrises(falls),thequantitysuppliedofthegoodrises(falls),holdingotherfactorsaffectingsupplyconstant.2-50SupplySupplyChangingonlypriceleadstochangesinquantitysupplied.Thistypeofchangeisgraphicallyrepresentedbyamovementalongagivensupplycurve,holdingotherfactorsthatimpactsupplyconstant.Changingfactorsotherthanpriceleadtochangesinsupply.Thesetypesofchangesaregraphicallyrepresentedbyashiftoftheentiresupplycurve.2-51SupplyChangesinQuantitySupplied2-52ChangeinSupplyinActionQuantityPriceS20DecreaseinsupplySupplyABS0S1IncreaseinsupplyInputpricesTechnologyorgovernmentregulationNumberoffirmsEntryExitSubstitutesinproductionTaxesExcisetaxAdvaloremtaxProducerexpectations2-53SupplySupplyShifters2-54ChangeinSupplyinActionQuantityofgasolineperweekPriceofgasoline0t=perunittaxof20￠SupplyS0S0+tt=20￠$1.20$1.00t

Excisetax2-55ChangeinSupplyinActionQuantityofbackpacksperweekPriceofbackpacks0SupplyS0S1=1.20xS0$24$10Advaloremtax$121,100$202,450TheSupplyFunctionThesupplyfunctionforgoodXisamathematicalrepresentationdescribinghowmanyunitswillbeproducedatdifferentpricesforX,pricesofinputsW,pricesoftechnologicallyrelatedgoods,andotherfactorsthataffectthesupplyforgoodX.2-56SupplyTheLinearSupplyFunction

2-57Supply

2-58SupplyUnderstandingtheLinearSupplyFunction

2-59SupplyTheLinearSupplyFunctioninActionInverseSupplyFunction

2-60SupplyTheamountproducersreceiveinexcessoftheamountnecessarytoinducethemtoproducethegood.2-61SupplyProducerSurplus2-62ProducerSurplusinActionQuantityPriceSupply$4000800

Supply

ProducersurplusCompetitivemarketequilibriumDeterminedbytheinteractionsofthemarketdemandandmarketsupplyforthegood.Apriceandquantitysuchthatthereisnoshortageorsurplusinthemarket.Forcesthatdrivemarketdemandandmarketsupplyarebalanced,andthereisnopressureonpricesorquantitiestochange.2-63MarketEquilibriumMarketEquilibrium2-64QuantityPriceSupply0

280DemandSurplusShortage

MarketEquilibriumMarketEquilibriumI

2-65MarketEquilibriumIIMarketEquilibriumInacompetitivemarketequilibrium,priceandquantityfreelyadjusttotheforcesofdemandandsupply.Sometimegovernmentrestrictshowmuchpricesarepermittedtoriseorfall.PriceceilingPricefloor2-66PriceRestrictionsandMarketEquilibriumPriceRestrictions2-67QuantityPriceSupply0

280DemandShortage

PriceceilingNonpecuniarypriceLostsocialwelfarePriceRestrictionsandMarketEquilibriumPriceCeilinginActionI

2-68PriceRestrictionsandMarketEquilibriumPriceCeilinginActionII2-69QuantityPriceSupply0

280DemandSurplus

PricefloorPriceRestrictionsandMarketEquilibriumPriceFloorinActionICostofpurchasingexcesssupply

2-70PriceRestrictionsandMarketEquilibriumPriceFloorinActionIIComparativestaticanalysisThestudyofthemovementfromoneequilibriumtoanother.Competitivemarkets,operatingfreeofpricerestraints,willbeanalyzedwhen:Demandchanges;Supplychanges;Demandandsupplysimultaneouslychange.2-71ComparativeStaticsComparativeStaticsIncreaseindemandonlyIncreaseequilibriumpriceIncreaseequilibriumquantityDecreaseindemandonlyDecreaseequilibriumpriceDecreaseequilibriumquantityExampleofchangeindemandSupposethatconsumerincomesareprojectedtoincrease2.5%andthenumberofindividualsover25yearsofagewillreachanalltimehighbytheendofnextyear.Whatistheimpactontherentalcarmarket?2-72ChangesinDemandComparativeStatics2-73ChangeinDemandinActionQuantity(thousandsrentedperday)PriceSupply0$45104DemandforRentalCarsDemand1$49Demand0100ComparativeStatics108IncreaseinsupplyonlyDecreaseequilibriumpriceIncreaseequilibriumquantityDecreaseinsupplyonlyIncreaseequilibriumpriceDecreaseequilibriumquantityExampleofchangeindemandSupposethatabillbeforeCongresswouldrequireallemployerstoprovidehealthcaretotheirworkers.Whatistheimpactonretailmarkets?2-74ChangesinSupplyComparativeStatics2-75QuantityPriceSupply00

Demand

Supply1

ComparativeStaticsChangeinSupplyinActionSupposethatsimultaneouslythefollowingeventsoccur:anearthquakehitKobe,Japananddecreasedthesupplyoffermentedriceusedtomakesakewine.thestresscausedbytheearthquakeledmanytoincreasetheirdemandforsake,andotheralcoholicbeverages.WhatisthecombinedimpactonJapan’ssakemarket?2-76ComparativeStaticsSimultaneousShiftsinSupplyandDemand2-77QuantityPriceSupply0

0Demand1

Supply1Demand0ComparativeStaticsSimultaneousShiftsinSupplyandDemandinActionJapan’sSakeMarket

Supply2

ABCDemandandsupplyanalysisisusefulforClarifyingthe“bigpicture”(thegeneralimpactofacurrenteventonequilibriumpricesandquantities).Organizinganactionplan(neededchangesinproduction,inventories,rawmaterials,humanresources,marketingplans,etc.).2-78ConclusionMarketDemandCurve2-79Quantity(MillionsofBarrels)Price(DollarsperBarrel)Demandoil$1400$100$6080160$20240280InternationalOilMarketDemandChangesinQuantityDemanded2-80InternationalOilMarketQuantity(MillionsofBarrels)Demandoil$1400$100$9080100280Price(DollarsperBarrel)IncreaseinquantitydemandedDemandChangeinDemand2-81InternationalOilMarketQuantity(MillionsofBarrels)Demandoil1$1400$100$9080100280Price(DollarsperBarrel)Demandoil2120140Increaseindemand$160Demand2-82Quantity(MillionsofBarrels)Price(DollarsperBarrel)Supplyoil0$65$608090$20InternationalOilMarketIncreaseinquantitysuppliedSupplyChangeinQuantitySupplied2-83Quantity(MillionsofBarrels)Price(DollarsperBarrel)Supplyoil$1400$100$6080160$20240InternationalOilMarketSupplyTheMarketSupplyCurve2-84ChangeinSupplyinActionQuantity(MillionsofBarrels)Price(DollarsperBarrel)Supplyoil1$1400$100180$20240InternationalOilMarketSupplyoil2100160$50DecreaseinsupplySupply2-85Quantity(MillionsofBarrels)Price(DollarsperBarrel)Supplyoil$1400$120$4040Qe=120$20200280InternationalOilMarketDemandoilSurplus160millionbarrelsForcesofdemandandsupplyputdownwardpressureonprice.Shortage160millionbarrelsForcesofdemandandsupplyputupwardpressureonprice.Pe=$80CompetitivemarketequilibriumQd(Pe)=Qs(Pe)MarketEquilibriumCompetitiveMarketEquilibriumI2-86Quantity(MillionsofBarrels)Price(DollarsperBarrel)Supplyoil$1400Pf=$120Pc=$4040Qe=120$20200280InternationalOilMarketDemandoilShortage160millionbarrelsPe=$80CompetitivemarketequilibriumQd(Pe)=Qs(Pe)PriceceilingNonpecuniarypriceLostsocialwelfarePriceRestrictionsandMarketEquilibriumPriceCeilinginActionIIncreaseindemandonlyIncreaseequilibriumpriceIncreaseequilibriumquantityDecreaseindemandonlyDecreaseequilibriumpriceDecreaseequilibriumquantityExampleofchangeindemandSupposethatworldwidedemandforfuel-efficientautomobilesisprojectedtoincreaseby30%nextyear.Whatistheimpactontheinternationalcrudeoilmarket?2-87ChangesinDemandComparativeStatics2-88ChangeinDemandinActionQuantity(MillionsofBarrels)Price(DollarsperBarrel)Supplyoil$1400Pe2=$36Qe1=120$20280InternationalOilMarketDemandoil1Pe1=$80Demandoil2Qe2=68ComparativeStaticsIncreaseinsupplyonlyDecreaseequilibriumpriceIncreaseequilibriumquantityDecreaseinsupplyonlyIncreaseequilibriumpriceDecreaseequilibriumquantityExampleofchangeindemandSupposethatwarbreaksoutinamajoroil-producingcountryintheMiddleEast.Whatistheimpactontheinternationalcrudeoilmarket?2-89ChangesinSupplyComparativeStatics2-90Quantity(MillionsofBarrels)Price(DollarsperBarrel)Supplyoil1$1400Qe1=120$20280InternationalOilMarketDemandoilPe1=$80Supplyoil2Pe2=$100Qe2=80ComparativeStaticsChangeinSupplyinActionSupposethatsimultaneouslythefollowingtwoeventsoccur:worldwidedemandforfuel-efficientautomobilesisprojectedtoincreaseby30%nextyear.warbreaksoutinamajoroil-producingcountryintheMiddleEast.Whatisthecombinedimpactontheinternationalcrudeoilmarket?2-91ComparativeStaticsSimultaneousShiftsinSupplyandDemand2-92Quantity(MillionsofBarrels)Price(DollarsperBarrel)Supplyoil1$140Pe2=$65Qe2=10Qe1=120$20280InternationalOilMarketDemandoil1Pe1=$80Supplyoil2Demandoil2Theequilibriumpriceincreasesordecreasesdependingonthemagnitudeofthedemandandsupplychanges.ComparativeStaticsSimultaneousShiftsinSupplyandDemandinActionChapter3QuantitativeDemandAnalysisMcGraw-Hill/IrwinCopyright?2014byTheMcGraw-HillCompanies,Inc.Allrightsreserved.ChapterOutlineTheelasticityconceptOwnpriceelasticityofdemandElasticityandtotalrevenueFactorsaffectingtheownpriceelasticityofdemandMarginalrevenueandtheownpriceelasticityofdemandCross-priceelasticityRevenuechangeswithmultipleproductsIncomeelasticityOtherElasticitiesLineardemandfunctionsNonlineardemandfunctionsObtainingelasticitiesfromdemandfunctionsElasticitiesforlineardemandfunctionsElasticitiesfornonlineardemandfunctionsRegressionAnalysisStatisticalsignificanceofestimatedcoefficientsOverallfitofregressionlineRegressionfornonlinearfunctionsandmultipleregression3-94ChapterOverviewIntroductionChapter2focusedoninterpretingdemandfunctionsinqualitativeterms:Anincreaseinthepriceofagoodleadsquantitydemandedforthatgoodtodecline.Adecreaseinincomeleadsdemandforanormalgoodtodecline.Thischapterexaminesthemagnitudeofchangesusingtheelasticityconcept,andintroducesregressionanalysistomeasuredifferentelasticities.3-95ChapterOverviewTheElasticityConceptElasticityMeasurestheresponsivenessofapercentagechangeinonevariableresultingfromapercentagechangeinanothervariable.3-96TheElasticityConceptTheElasticityFormula

3-97TheElasticityConceptMeasurementAspectsofElasticity

3-98TheElasticityConceptOwnPriceElasticity

3-99OwnPriceElasticityofDemandLinearDemand,Elasticity,andRevenue3-100QuantityPriceDemand$400$20$102030$540$15$30$25$351050607080

Observation:Elasticityvariesalongalinear(inverse)demandcurveOwnPriceElasticityofDemandTotalRevenueTestWhendemandiselastic:Apriceincrease(decrease)leadstoadecrease(increase)intotalrevenue.Whendemandisinelastic:Apriceincrease(decrease)leadstoanincrease(decrease)intotalrevenue.Whendemandisunitaryelastic:Totalrevenueismaximized.3-101OwnPriceElasticityofDemandExtremeElasticities3-102QuantityDemandPricePerfectlyInelastic

Demand

PerfectlyelasticOwnPriceElasticityofDemandFactorsAffectingtheOwnPriceElasticityThreefactorscanimpacttheownpriceelasticityofdemand:Availabilityofconsumptionsubstitutes.Time/Durationofpurchasehorizon.Expenditureshareofconsumers’budgets.3-103OwnPriceElasticityofDemandElasticityandMarginalRevenue

3-104OwnPriceElasticityofDemandDemandandMarginalRevenueQuantity0

MR3Price6ElasticDemandOwnPriceElasticityofDemand16InelasticUnitaryMarginalRevenue(MR)3-105Cross-PriceElasticity

3-106Cross-PriceElasticityCross-PriceElasticityinAction

3-107Cross-PriceElasticityCross-PriceElasticity

3-108Cross-PriceElasticityCross-PriceElasticityinAction

3-109Cross-PriceElasticityIncomeElasticity

3-110IncomeElasticityIncomeElasticityinAction

3-111IncomeElasticityOtherElasticitiesOwnadvertisingelasticityofdemandforgoodXistheratioofthepercentagechangeintheconsumptionofXtothepercentagechangeinadvertisingspentonX.Cross-advertisingelasticitybetweengoodsXandYwouldmeasurethepercentagechangeintheconsumptionofXthatresultsfroma1percentchangeinadvertisingtowardY.3-112OtherElasticitiesElasticitiesforLinearDemandFunctions

3-113ObtainingElasticitiesFromDemandFunctionsElasticitiesforLinearDemandFunctionsInAction

3-114ObtainingElasticitiesFromDemandFunctionsElasticitiesforNonlinearDemandFunctions

3-115ObtainingElasticitiesFromDemandFunctionsElasticitiesforNonlinearDemandFunctions

InAction

3-116ObtainingElasticitiesFromDemandFunctionsRegressionAnalysisHowdoesoneobtaininformationonthedemandfunction?Publishedstudies.Hireconsultant.Statisticaltechniquecalledregressionanalysisusingdataonquantity,price,incomeandotherimportantvariables.3-117RegressionAnalysisRegressionLineandLeastSquaresRegression

3-118RegressionAnalysisExcelandLeastSquaresEstimates3-119SUMMARYOUTPUTRegressionStatisticsMultipleR0.87RSquare0.75AdjustedRSquare0.72StandardError112.22Observations10.00ANOVA

DfSSMSFSignificanceFRegression1301470.89301470.8923.940.0012Residual8100751.6112593.95Total9402222.50

CoefficientsStandardErrortStatP-valueLower95%Upper95%Intercept1631.47243.976.690.00021068.872194.07Price-2.600.53-4.890.0012-3.82-1.37

RegressionAnalysisEvaluatingStatisticalSignificance

3-120RegressionAnalysisExcelandLeastSquaresEstimates3-121SUMMARYOUTPUTRegressionStatisticsMultipleR0.87RSquare0.75AdjustedRSquare0.72StandardError112.22Observations10.00ANOVA

DfSSMSFSignificanceFRegression1301470.89301470.8923.940.0012Residual8100751.6112593.95Total9402222.50

CoefficientsStandardErrortStatP-valueLower95%Upper95%Intercept1631.47243.976.690.00021068.872194.07Price-2.600.53-4.890.0012-3.82-1.37RegressionAnalysis

EvaluatingOverallRegressionLineFit:R-Square

3-122RegressionAnalysisEvaluatingOverallRegressionLineFit:

AdjustedR-Square

3-123RegressionAnalysisEvaluatingOverallRegressionLineFit:F-StatisticAmeasureofthetotalvariationexplainedbytheregressionrelativetothetotalunexplainedvariation.ThegreatertheF-statistic,thebettertheoverallregressionfit.Equivalently,theP-valueisanothermeasureoftheF-statistic.Lowerp-valuesareassociatedwithbetteroverallregressionfit.3-124RegressionAnalysisExcelandLeastSquaresEstimates3-125SUMMARYOUTPUTRegressionStatisticsMultipleR0.87RSquare0.75AdjustedRSquare0.72StandardError112.22Observations10.00ANOVA

DfSSMSFSignificanceFRegression1301470.89301470.8923.940.0012Residual8100751.6112593.95Total9402222.50

CoefficientsStandardErrortStatP-valueLower95%Upper95%Intercept1631.47243.976.690.00021068.872194.07Price-2.600.53-4.890.0012-3.82-1.37RegressionAnalysisRegressionforNonlinearFunctions

andMultipleRegression

3-126RegressionAnalysisExcelandLeastSquaresEstimates3-127SUMMARYOUTPUTRegressionStatisticsMultipleR0.89RSquare0.79AdjustedRSquare0.69StandardError9.18Observations10.00ANOVA

DfSSMSFSignificanceFRegression31920.99640.337.590.182Residual6505.9184.32Total92426.90

CoefficientsStandardErrortStatP-valueLower95%Upper95%Intercept135.1520.656.540.000684.61185.68Price-0.140.06-2.410.0500-0.290.00Advertising0.540.640.850.4296-1.022.09Distance-5.781.26-4.610.0037-8.86-2.71RegressionAnalysisConclusionElasticitiesaretoolsy