As a member of Analysts Incorporated consulting firm, you have carefully collected data on a manufacturing...

           

Transcribed Image Text:

As a member of Analysts Incorporated consulting firm, you have carefully collected data on a manufacturing firm's output, capital and labor. The data are in the spreadsheet below. You believe the firm's production function to be Cobb-Douglas, Q=CK L Click here for the Excel Data File a. Use regression analysis to get estimates for the parameters a and b from the Cobb-Douglas production function. Round your answers to the nearest hundredth Estimate for a Estimate for b Are your estimates statistically significant? Both coefficients are statistically significant b. Suppose capital is fixed at 400 and the price of output is $100. If labor costs $95 per unit, how many units of labor should the firm hire to maximize profits? Round your answer to the nearest whole number. a Use regression analysis to get estimates for the parameters a and b from the Cobb-Dougies production function. Round your answers to the nearest hundredth Estimate for a Estimate for b Are your estimates statistically significant? Both coefficients are statistically significant b. Suppose capital is fixed at 400 and the price of output is $100. If labor costs $95 per unit, how many units of labor should the fir hire to maximize profits? Round your answer to the nearest whole number c. If labor costs $75 per unit and capital costs $125 per unit, what is the cost-minimizing input mix for producing 4,000 units of outs Round your answers to the nearest whole number Labor: Capital J10 A 1 Output 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 222 22 23 24 25 Ready B Capital 3563 4554 3658 4107 3639 2610 5497 4219 4400 3812 4817 3762 5579 5834 5365 5153 4843 4752 5492 4654 5256 2960 7416 4727 Data 374 360 379 361 438 368 432 400 420 455 370 384 492 374 426 C Labor 437 436 474 490 404 451 382 498 391 213 285 213 231 204 216 244 245 231 255 270 206 262 235 264 271 218 274 283 310 262 235 fx 302 233 D E LL AutoSave File J10 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Ready A Off Home Insert Page Layout PROTECTED VIEW Be careful-files from the internet can contain virus- 6702 5059 4914 8769 3313 5164 4925 4781 5716 6983 5723 5441 3446 3588 5196 5171 4661 4967 4122 4603 4538 4615 4877 6627 4035 B Data 461 377 459 448 412 445 487 447 381 394 446 359 Draw 353 401 354 380 482 485 397 438 399 393 401 413 359 C fx 275 231 298 295 210 235 212 228 272 261 279 207 289 218 255 284 210 284 309 267 219 248 241 267 248 D Formulas E VEL W 428 File J10 AutoSave of H 215 Home Insert Draw Page Layout Rev PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you ne- 50 55555 51 52 53 54 55 56 57 58 59 25283 28 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 Ready A 4035 4445 6224 5384 5406 5104 4990 4478 4917 4735 2877 4898 8642 5758 4139 3559 3492 5089 5177 5886 5874 3760 5728 5684 2825 Data B X 359 424 443 460 416 422 370 493 365 457 432 425 483 438 405 479 438 397 384 395 397 448 373 482 436 C 248 234 294 279 266 307 203 237 302 252 236 274 232 281 202 217 244 216 229 296 297 243 305 247 252 fix D Formula Bar E <1 Formulas Data Q5-24 G J10 75 76 S 77 78 79 80 81 82 00 00 83 84 85 86 87 CO File 88 89 90 91 92 93 94 595 96 AutoSave Off 97 98 99 Ready A Home 5709 5325 5325 3566 4158 4226 5652 4737 4401 6437 4362 5779 4684 5201 3508 4858 4084 5197 5052 6069 5492 3609 5378 4863 6067 Page Layout Formulas Data PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless yo Data H & B Insert 411 389 494 416 413 431 424 399 369 466 382 376 371 499 362 356 387 499 464 469 354 420 460 416 398 C 24 Draw VA 226 306 252 291 263 244 284 204 280 281 288 283 248 201 289 221 237 270 262 304 290 258 239 222 273 D Formula Bar E V LE Q5 G AutoSave File J10 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 Ready 1 A Off Page Layout Formulas Data PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless Home 5279 5037 6067 4222 4967 5745 5552 5324 4997 5908 6020 4860 6891 4874 4941 4255 5564 8218 3825 5508 3001 4709 4547 3364 6610 B Insert Data 4225 419 424 430 449 481 385 479 387 356 470 373 433 463 483 394 380 495 410 357 431 391 361 471 486 453 Draw 286 206 286 309 206 276 284 291 310 302 220 218 292 235 293 258 268 303 263 249 211 283 205 227 266 fx D Formula Bar E G AutoSave HSN .. File J10 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 Ready A Insert Draw Page Layout Formulas Data PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unles Home 6610 5345 4167 4040 5265 5307 4033 7577 Off 4229 3896 4959 4624 5793 6634 3950 6634 5629 5406 5209 5536 4885 3959 5414 5634 6682 Data B 453 440 363 350 488 449 387 387 473 366 405 367 398 448 360 486 427 446 454 469 499 498 382 380 454 C 266 310 211 310 254 271 244 249 235 240 223 304 269 295 206 225 298 242 290 272 310 226 232 231 284 Type here to search fx D Formula Bar 7 E F LE C AutoSave File J10 148 149 150 151 152 153 HS Insert Page Layout Formulas Data PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless 162 163 164 165 166 167 168 169 170 171 1.72 6682 3935 4936 3855 5417 5318 154 4173 155 4200 156 5726 157 5009 158 5914 159 4771 160 7434 161 3903 3656 4219 4241 7098 7518 4456 3615 6359 5295 6205 5667 A Ready Off Home B Data 454 445 440 466 411 467 474 416 477 415 450 439 438 379 428 368 483 376 441 366 363 380 353 437 431 C Draw 284 304 257 230 233 265 237 281 288 213 265 243 248 219 264 243 231 242 282 208 218 231 242 271 298 fx D E F G File AutoSave Off H& 212-5 Home Insert Draw Page Layout Data R PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you J10 172 173 174 175 176 177 178 18 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 Ready A 5667 5760 4506 4334 5363 5328 5115 6509 5037 4587 4801 4862 3375 6037 5910 4485 5417 3558 3573 4758 5950 6012 4960 5794 5805 Data B 431 458 385 452 467 384 354 453 455 387 472 376 397 461 375 467 408 458 352 469 373 442 403 449 403 C 298 252 222 283 268 292 261 264 212 295 227 261 251 281 295 256 260 232 247 277 207 292 272 209 291 fx D Formula Bar V LEE Formulas F Q5-2 G File J10 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 Home A Formulas Page Layout Dat PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unl- 3573 4758 5950 6012 4960 5794 5805 4443 4367 4659 3944 4596 4775 7635 8054 Insert B K 352 469 373 442 403 449 403 377 362 352 438 470 385 462 483 Draw ✔ fix C 247 277 207 292 272 209 291 227 217 275 289 289 225 243 201 D E EL F G As a member of Analysts Incorporated consulting firm, you have carefully collected data on a manufacturing firm's output, capital and labor. The data are in the spreadsheet below. You believe the firm's production function to be Cobb-Douglas, Q=CK L Click here for the Excel Data File a. Use regression analysis to get estimates for the parameters a and b from the Cobb-Douglas production function. Round your answers to the nearest hundredth Estimate for a Estimate for b Are your estimates statistically significant? Both coefficients are statistically significant b. Suppose capital is fixed at 400 and the price of output is $100. If labor costs $95 per unit, how many units of labor should the firm hire to maximize profits? Round your answer to the nearest whole number. a Use regression analysis to get estimates for the parameters a and b from the Cobb-Dougies production function. Round your answers to the nearest hundredth Estimate for a Estimate for b Are your estimates statistically significant? Both coefficients are statistically significant b. Suppose capital is fixed at 400 and the price of output is $100. If labor costs $95 per unit, how many units of labor should the fir hire to maximize profits? Round your answer to the nearest whole number c. If labor costs $75 per unit and capital costs $125 per unit, what is the cost-minimizing input mix for producing 4,000 units of outs Round your answers to the nearest whole number Labor: Capital J10 A 1 Output 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 222 22 23 24 25 Ready B Capital 3563 4554 3658 4107 3639 2610 5497 4219 4400 3812 4817 3762 5579 5834 5365 5153 4843 4752 5492 4654 5256 2960 7416 4727 Data 374 360 379 361 438 368 432 400 420 455 370 384 492 374 426 C Labor 437 436 474 490 404 451 382 498 391 213 285 213 231 204 216 244 245 231 255 270 206 262 235 264 271 218 274 283 310 262 235 fx 302 233 D E LL AutoSave File J10 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Ready A Off Home Insert Page Layout PROTECTED VIEW Be careful-files from the internet can contain virus- 6702 5059 4914 8769 3313 5164 4925 4781 5716 6983 5723 5441 3446 3588 5196 5171 4661 4967 4122 4603 4538 4615 4877 6627 4035 B Data 461 377 459 448 412 445 487 447 381 394 446 359 Draw 353 401 354 380 482 485 397 438 399 393 401 413 359 C fx 275 231 298 295 210 235 212 228 272 261 279 207 289 218 255 284 210 284 309 267 219 248 241 267 248 D Formulas E VEL W 428 File J10 AutoSave of H 215 Home Insert Draw Page Layout Rev PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you ne- 50 55555 51 52 53 54 55 56 57 58 59 25283 28 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 Ready A 4035 4445 6224 5384 5406 5104 4990 4478 4917 4735 2877 4898 8642 5758 4139 3559 3492 5089 5177 5886 5874 3760 5728 5684 2825 Data B X 359 424 443 460 416 422 370 493 365 457 432 425 483 438 405 479 438 397 384 395 397 448 373 482 436 C 248 234 294 279 266 307 203 237 302 252 236 274 232 281 202 217 244 216 229 296 297 243 305 247 252 fix D Formula Bar E <1 Formulas Data Q5-24 G J10 75 76 S 77 78 79 80 81 82 00 00 83 84 85 86 87 CO File 88 89 90 91 92 93 94 595 96 AutoSave Off 97 98 99 Ready A Home 5709 5325 5325 3566 4158 4226 5652 4737 4401 6437 4362 5779 4684 5201 3508 4858 4084 5197 5052 6069 5492 3609 5378 4863 6067 Page Layout Formulas Data PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless yo Data H & B Insert 411 389 494 416 413 431 424 399 369 466 382 376 371 499 362 356 387 499 464 469 354 420 460 416 398 C 24 Draw VA 226 306 252 291 263 244 284 204 280 281 288 283 248 201 289 221 237 270 262 304 290 258 239 222 273 D Formula Bar E V LE Q5 G AutoSave File J10 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 Ready 1 A Off Page Layout Formulas Data PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless Home 5279 5037 6067 4222 4967 5745 5552 5324 4997 5908 6020 4860 6891 4874 4941 4255 5564 8218 3825 5508 3001 4709 4547 3364 6610 B Insert Data 4225 419 424 430 449 481 385 479 387 356 470 373 433 463 483 394 380 495 410 357 431 391 361 471 486 453 Draw 286 206 286 309 206 276 284 291 310 302 220 218 292 235 293 258 268 303 263 249 211 283 205 227 266 fx D Formula Bar E G AutoSave HSN .. File J10 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 Ready A Insert Draw Page Layout Formulas Data PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unles Home 6610 5345 4167 4040 5265 5307 4033 7577 Off 4229 3896 4959 4624 5793 6634 3950 6634 5629 5406 5209 5536 4885 3959 5414 5634 6682 Data B 453 440 363 350 488 449 387 387 473 366 405 367 398 448 360 486 427 446 454 469 499 498 382 380 454 C 266 310 211 310 254 271 244 249 235 240 223 304 269 295 206 225 298 242 290 272 310 226 232 231 284 Type here to search fx D Formula Bar 7 E F LE C AutoSave File J10 148 149 150 151 152 153 HS Insert Page Layout Formulas Data PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless 162 163 164 165 166 167 168 169 170 171 1.72 6682 3935 4936 3855 5417 5318 154 4173 155 4200 156 5726 157 5009 158 5914 159 4771 160 7434 161 3903 3656 4219 4241 7098 7518 4456 3615 6359 5295 6205 5667 A Ready Off Home B Data 454 445 440 466 411 467 474 416 477 415 450 439 438 379 428 368 483 376 441 366 363 380 353 437 431 C Draw 284 304 257 230 233 265 237 281 288 213 265 243 248 219 264 243 231 242 282 208 218 231 242 271 298 fx D E F G File AutoSave Off H& 212-5 Home Insert Draw Page Layout Data R PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you J10 172 173 174 175 176 177 178 18 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 Ready A 5667 5760 4506 4334 5363 5328 5115 6509 5037 4587 4801 4862 3375 6037 5910 4485 5417 3558 3573 4758 5950 6012 4960 5794 5805 Data B 431 458 385 452 467 384 354 453 455 387 472 376 397 461 375 467 408 458 352 469 373 442 403 449 403 C 298 252 222 283 268 292 261 264 212 295 227 261 251 281 295 256 260 232 247 277 207 292 272 209 291 fx D Formula Bar V LEE Formulas F Q5-2 G File J10 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 Home A Formulas Page Layout Dat PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unl- 3573 4758 5950 6012 4960 5794 5805 4443 4367 4659 3944 4596 4775 7635 8054 Insert B K 352 469 373 442 403 449 403 377 362 352 438 470 385 462 483 Draw ✔ fix C 247 277 207 292 272 209 291 227 217 275 289 289 225 243 201 D E EL F G