sun computer

Project Description:

sun computer workstations gathered average monthly sales gures from its
56 branch oces and dealership across the country and estimated the following
demand (sales) for its product:
q = 15000 -2:5p + 150a + 0:3ppc + 0:35pm + 0:2pc
(2:87) (-2:17) (0:67) (2:5) (2:06) (1:54)
adjusted r2 = 0:68 and standard error of the whole model, se = 786: numbers
in the parenthesis are t-statistics. the variables and their assumed values are:
q=quantity, p=price of a workstation=7000, a=advertising expenditures (in
thousands)=52, ppc=average price of a personal computer=4000, pm=average
price of a minicomputer=15000, pc=average price of a leading competitor's
workstation=8000
a. compute the point price elasticity and point advertising elasticity. interpret eachone.
b. what is a predicted range of demand for sun workstations with 95% confidence.
c. you have become concerned that the rm's sales are currently lower than the pro t maximizing level, given the marginal cost of $1500 per workstation. control whether your concern is valid and suggest a new pricing strategy: (in- crease/decrease/no change) the current price!
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Project Stats:

Price Type: Negotiable

Expired
Total Proposals: 2
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