The table below shows the average sales (as number sold per day) at grocery store of...

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The table below shows the average sales (as number sold per day) at grocery store of Product A based on its prices and the prices of a competitor's Product B, where the two competing products and their respective prices are displayed next to each other, S=S(A,B). A = $2.75 A $3.00 A 107 93 73 142 122 191 171 240 220 289 269 B = $2.90 B = $3.15 156 B = $3.40 205 B$3.65 254 B = $3.90 303 $3.25 A = $3.50 48 97 146 195 244 A = $3.75 15 64 113 162 211 1) Use the table to estimate the rate of change in average sales of Product A with respect to the price of Product B. Explain how you arrived at your estimate. 2) Explain why you could not estimate the rate of change in average sales of Product A with respect to the price of Product A as easily as you estimated the rate of change in problem 1). 3) In order to estimate the average sales of Product A when the price of Product A is $2.90 and the price of Product B is $3.90, which variable should be held constant? Why? 4) Will the cross-section needed to estimate the average sales in problem 3) be represented by a row or column? Why? 5) Without looking at a scatterplot or computing regression models, would a linear, exponential or quadratic cross-sectional model be most appropriate for the estimate in problem 3)? Why? Show calculations of average and percentage rates of change and second differences to support your decision. 6) Using your answer from problem 5), find the best cross-sectional model that could be used for the estimate in problem 3). 7) Use your model from problem 6) to estimate the average sales of Product A when the price of Product A is $2.90 and the price of Product B is $3.90. 8) Determine the best model among linear, exponential and quadratic to estimate the rate of change in average sales of Product A with respect to the price of Product A when the price of Product B is $3.15. [Follow the procedure of problems 3)-7).] 9) Use your model from problem 8) to estimate average sales of Product A when the price of Product A is $3.55 and the price of Product B is $3.15. 10) Calculate the derivative of your model from problem 8) and evaluate it at (3.55, 3.15) Write a sentence interpreting the result. 11) Explain why your calculation and interpretation in problems 9) and 10) as could also be used to estimate and interpret- DA (A,B)=(3.55,3.15) The table below shows the average sales (as number sold per day) at grocery store of Product A based on its prices and the prices of a competitor's Product B, where the two competing products and their respective prices are displayed next to each other, S=S(A,B). A = $2.75 A $3.00 A 107 93 73 142 122 191 171 240 220 289 269 B = $2.90 B = $3.15 156 B = $3.40 205 B$3.65 254 B = $3.90 303 $3.25 A = $3.50 48 97 146 195 244 A = $3.75 15 64 113 162 211 1) Use the table to estimate the rate of change in average sales of Product A with respect to the price of Product B. Explain how you arrived at your estimate. 2) Explain why you could not estimate the rate of change in average sales of Product A with respect to the price of Product A as easily as you estimated the rate of change in problem 1). 3) In order to estimate the average sales of Product A when the price of Product A is $2.90 and the price of Product B is $3.90, which variable should be held constant? Why? 4) Will the cross-section needed to estimate the average sales in problem 3) be represented by a row or column? Why? 5) Without looking at a scatterplot or computing regression models, would a linear, exponential or quadratic cross-sectional model be most appropriate for the estimate in problem 3)? Why? Show calculations of average and percentage rates of change and second differences to support your decision. 6) Using your answer from problem 5), find the best cross-sectional model that could be used for the estimate in problem 3). 7) Use your model from problem 6) to estimate the average sales of Product A when the price of Product A is $2.90 and the price of Product B is $3.90. 8) Determine the best model among linear, exponential and quadratic to estimate the rate of change in average sales of Product A with respect to the price of Product A when the price of Product B is $3.15. [Follow the procedure of problems 3)-7).] 9) Use your model from problem 8) to estimate average sales of Product A when the price of Product A is $3.55 and the price of Product B is $3.15. 10) Calculate the derivative of your model from problem 8) and evaluate it at (3.55, 3.15) Write a sentence interpreting the result. 11) Explain why your calculation and interpretation in problems 9) and 10) as could also be used to estimate and interpret- DA (A,B)=(3.55,3.15)

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Answer 1 Rate of change in average sales of Product A with respect to the price of Product B change ... View the full answer