Examine the computer output for Equation 1 modeling the number of cars admitted to the Blue Spruce Holiday Light Up Event. Extract and specify Equation 1 which will show Cars as a function of Price.

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3. Predict the number of cars through the gate when the admission price is set at $6.
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4. Now predict the number of cars through the gate when the admission price is set at $7.
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5. Compute the arc price elasticity of demand in the range of prices $6 to $7.
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6. Is demand elastic or inelastic in the price range $6 to $7.
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7. Examine the computer output for Equation 2 modeling the number of cars admitted to the Blue Spruce Holiday Light Up Event. Extract and specify Equation 2 which will show Cars as a function of Price and average December Temperature.
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7. Predict the number of Cars through the gate if the price is $8 and the average December temperature is 30 degrees.

 

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9. Using Equation 1, what price should we charge to get the maximum total revenue?
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10. Show or explain how you determined the revenue-maximizing price in the previous question? [There are several ways to do this. Think, explore, and try to find a way to figure it out.]
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11. What percent of the variation in cars through the gate can be accounted for by variation in admission price and average December Temperature?
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Dependent Variable	CARS
N	15
Multiple R	0.8298604
Squared Multiple R	0.6886683
Adjusted Squared Multiple R	0.6647197
Standard Error of Estimate	478.7469853

                      

Regression Coefficients B = (X'X)-1X'Y
Effect	Coefficient	Standard Error	Std. Coefficient	Tolerance	t	p-value
CONSTANT	7,553.2334688	580.7547678	0.0000000	.	13.0058914	0.0000000
PRICE	-633.9414634	118.2181417	-0.8298604	1.0000000	-5.3624719	0.0001292

            

Dependent Variable	CARS
N	15
Multiple R	0.9203313
Squared Multiple R	0.8470097
Adjusted Squared Multiple R	0.8215113
Standard Error of Estimate	349.3071128

                             

Regression Coefficients B = (X'X)-1X'Y
Effect	Coefficient	Standard Error	Std. Coefficient	Tolerance	t	p-value
CONSTANT	5,017.0284102	835.1434178	0.0000000	.	6.0073854	0.0000615
PRICE	-613.3296817	86.4533074	-0.8028786	0.9954233	-7.0943461	0.0000126
PITTDECT	73.4854826	20.8519046	0.3988350	0.9954233	3.5241617	0.0041912

                                                                    

Case	CARS	PRICE	PITTDECT
1	6000	3	33.9
2	5966.7	3	31.7
3	4697.3	4	38.2
4	4436.8	4	27.7
5	4760	4	36.5
6	5072.8	4	33.5
7	5066	5	37.8
8	4446	5	34.6
9	3455.4	5	23.1
10	4781.4	5	37.5
11	3865.3	6	30.7
12	3447.8	6	32.6
13	3711	6	33.3
14	3448.2	6	27.6
15	4500.2	6	38.8
16	.	.	.

Answer rating: 100% (QA)

Equation 1 Modeling Cars as a Function of Price The equation for modeling the number of cars admitted to the Blue Spruce Holiday Light Up Event as a f... View the full answer