Scribd Logo
Upload

Welcome to Scribd!

  • 180 views

    Assignment 1

    Uploaded by

    kawish
    The document contains information about a survey Fresh Foods conducted on seasonal fruit sales over 7 months, including quantity sold, price, and advertising spent. It also provides regression statistics analyzing the relationship between these variables. Additionally, it includes two questions - to estimate sales at a given price and advertising level, and to analyze the impact of increased advertising on revenues and profits. The second part provides supply and demand equations for dog treats and asks to calculate the equilibrium. The last section provides supply and demand tables for salmon before and after good weather conditions and asks a series of questions analyzing the impact.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Assignment 1

    Uploaded by

    kawish
    180 views3 pages
    The document contains information about a survey Fresh Foods conducted on seasonal fruit sales over 7 months, including quantity sold, price, and advertising spent. It also provides regression statistics analyzing the relationship between these variables. Additionally, it includes two questions - to estimate sales at a given price and advertising level, and to analyze the impact of increased advertising on revenues and profits. The second part provides supply and demand equations for dog treats and asks to calculate the equilibrium. The last section provides supply and demand tables for salmon before and after good weather conditions and asks a series of questions analyzing the impact.

    Original Description:

    qq

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains information about a survey Fresh Foods conducted on seasonal fruit sales over 7 months, including quantity sold, price, and advertising spent. It also provides regression statistics analyzing the relationship between these variables. Additionally, it includes two questions - to estimate sales at a given price and advertising level, and to analyze the impact of increased advertising on revenues and profits. The second part provides supply and demand equations for dog treats and asks to calculate the equilibrium. The last section provides supply and demand tables for salmon before and after good weather conditions and asks a series of questions analyzing the impact.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    180 views3 pages

    Assignment 1

    Uploaded by

    kawish
    The document contains information about a survey Fresh Foods conducted on seasonal fruit sales over 7 months, including quantity sold, price, and advertising spent. It also provides regression statistics analyzing the relationship between these variables. Additionally, it includes two questions - to estimate sales at a given price and advertising level, and to analyze the impact of increased advertising on revenues and profits. The second part provides supply and demand equations for dog treats and asks to calculate the equilibrium. The last section provides supply and demand tables for salmon before and after good weather conditions and asks a series of questions analyzing the impact.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Assignment 1

    Q.1) Fresh Food has recently carried out a survey of the demand for their seasonal fruits. They observed the following
    outcomes over the last seven months:

    Quantity
    Sold Price Advertising
    8500 $ 2 $ 2,800
    4700 $ 5 $ 200
    5800 $ 3 $ 400
    7400 $ 2 $ 500
    6200 $ 5 $ 3,200
    7300 $ 3 $ 1,800
    5600 $ 4 $ 900

    Regression Statistics
    Multiple R 0.980681431
    R Square 0.961736068
    Adjusted R
    Square 0.942604102
    Standard
    Error 310.5239249
    Observations 7

    ANOVA
    Significance
    df SS MS F F
    Regression 2 9694299.568 4847150 50.268544 0.001464128
    Residual 4 385700.4318 96425.11
    Total 6 10080000

    Standard Upper Lower Upper


    Coefficients Error t Stat P-value Lower 95% 95% 95.0% 95.0%
    Intercept 8536.213882 386.9117478 22.06243 0.000024981 7461.974654 9610.453 7461.9747 9610.453
    -
    Price -835.7223514 99.65304469 -8.38632 0.00110606 -1112.40356 -559.041 1112.4036 -559.041
    Advertising 0.592228496 0.104346803 5.675579 0.00475531 0.302515325 0.881942 0.3025153 0.881942

    RESIDUAL
    OUTPUT PROBABILITY OUTPUT

    Predicted Quantity
    Observation Quantity Sold Residuals Percentile Sold
    -
    1 8523.008967 23.00896712 7.14285714 4700
    2 4476.047825 223.9521754 21.4285714 5600
    -
    3 6265.938227 465.9382265 35.7142857 5800
    4 7160.883427 239.1165726 50 6200
    -
    5 6252.733311 52.73331119 64.2857143 7300
    6 7095.05812 204.9418798 78.5714286 7400
    -
    7 5726.330123 126.3301229 92.8571429 8500

    A. Estimate sales when the price is $50 and advertising is $100,000, stating any assumption that you need to make.

    B. If the firm charges $50 but increases advertising to $110,000, what conclusions can you derive in terms of revenues
    and profits?

    Q.2) The demand for dog treats is represented by the following equation.

    QD =300-50P

    Qs = - 100 + 150P

    Determine equilibrium Quantity Demand, Quantity Supply and Price.

    Mini Case Study


    Shift in supply: good weather for salmon (trout) fishing

    In the summer of 2000, weather conditions were excellent for commercial salmon fishing off the California coast. Heavy

    rains meant higher than normal levels of water in the rivers, which helped the salmon to breed. Slightly cooler ocean

    temperatures stimulated the growth of plankton—the microscopic organisms at the bottom of the ocean food chain—

    providing everything in the ocean with a hearty food supply. The ocean stayed calm during fishing season, so

    commercial fishing operations did not lose many days to bad weather.

    How did these climate conditions affect the quantity and price of salmon?

    The demand and supply model and table below provide the information we need to get started!
    Price per pound Quantity supplied in 1999 Quantity supplied in 2000 Quantity demanded

    $2.00 80 400 840

    $2.25 120 480 680

    $2.50 160 550 550

    $2.75 200 600 450

    $3.00 230 640 350

    $3.25 250 670 250

    $3.50 270 700 200

    A). Draw a demand and supply model representing the situation before the economic event took place.

    B). Decide whether the economic event being analyzed affects demand or supply.

    C). Decide whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the
    new demand or supply curve on the diagram.

    D). Identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium
    price and quantity.

    E). What does those numbers mean exactly?

    You might also like