7. Bret's Accounting & Tax Services is a small but locally well-known accounting firm in Sioux...

 

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7. Bret's Accounting & Tax Services is a small but locally well-known accounting firm in Sioux City, IA which completes taxes for individuals. Every year, firms like Bret's decide how much they will charge to complete and file an individual tax return. This price determines how many tax returns firms complete each year. Suppose you are an office manager for a firm like Bret's Accounting and Tax Services and you are trying to determine what your firm should charge next year for tax returns. "Bret's data" provided on the next page and also an excel file is provided to answer these questions. a) Graph the data using a scatter plot. Using the "Insert Trendline" function in Excel, determine whether you should use linear regression. b) Using Excel's Regression Analysis Function, run a regression and answer the following questions about your output. (Place your regression results beneath the graph from part a.) c) What is your estimated demand function? (Form Example: Q-100-SP, Round to 2 decimal places) d) How much of the variation in Returns Completed is explained using the price? (Report this as a percentage; round to 2 decimal places.) Is this regression statistically significant? (Acceptable Answers: Yes or No) e) How many returns do you expect to be completed if the firms charges $85 per return? f) What is the elasticity at this point in the demand curve? g) Are you on the elastic, inelastic, or unit elastic portion of your demand curve? (Acceptable Answers: Elastic, Inelastic, or Unit) h) Do you recommend an increase, decrease, or no change in the price with this information? (Acceptable Answers: Increase, Decrease, or NC) "Bret's data" is given below following page Return Price Returns Completed 70 70 75 75 0 80 80 85 80 80 80 90 90 95 95 100 100 90 90 85 80 932 932 910 920 876 852 811 857 847 865 785 802 789 731 663 709 771 792 831 834 7. Bret's Accounting & Tax Services is a small but locally well-known accounting firm in Sioux City, IA which completes taxes for individuals. Every year, firms like Bret's decide how much they will charge to complete and file an individual tax return. This price determines how many tax returns firms complete each year. Suppose you are an office manager for a firm like Bret's Accounting and Tax Services and you are trying to determine what your firm should charge next year for tax returns. "Bret's data" provided on the next page and also an excel file is provided to answer these questions. a) Graph the data using a scatter plot. Using the "Insert Trendline" function in Excel, determine whether you should use linear regression. b) Using Excel's Regression Analysis Function, run a regression and answer the following questions about your output. (Place your regression results beneath the graph from part a.) c) What is your estimated demand function? (Form Example: Q-100-SP, Round to 2 decimal places) d) How much of the variation in Returns Completed is explained using the price? (Report this as a percentage; round to 2 decimal places.) Is this regression statistically significant? (Acceptable Answers: Yes or No) e) How many returns do you expect to be completed if the firms charges $85 per return? f) What is the elasticity at this point in the demand curve? g) Are you on the elastic, inelastic, or unit elastic portion of your demand curve? (Acceptable Answers: Elastic, Inelastic, or Unit) h) Do you recommend an increase, decrease, or no change in the price with this information? (Acceptable Answers: Increase, Decrease, or NC) "Bret's data" is given below following page Return Price Returns Completed 70 70 75 75 0 80 80 85 80 80 80 90 90 95 95 100 100 90 90 85 80 932 932 910 920 876 852 811 857 847 865 785 802 789 731 663 709 771 792 831 834

Answer rating: 100% (QA)

Ans no a In drawing the trendline we display the equation as well as the R square values and by hit ... View the full answer