Colorful Tile, Inc., is a rapidly growing chain of ceramic tile outlets that caters to the do-it-yourself home remodeling market. In 2020, 33 stores were operated in small to medium-size metropolitan markets. An in-house study of sales by these outlets revealed the following (standard errors or standard deviations are in parentheses) Q = 4 – 5P + 2A + 0.2I + 0.25HF (3) (1.8) (0.7) (0.1) (0.1) R2 = 0.93, standard error of the estimate (SEE) = 6 Here, Q is tile sales (in thousands of cases), P is tile price (per case), A is advertising expenditures (in thousands of dollars), I is disposable income per household (in thousands of dollars), and HF is household formation (in hundreds). (A) Fully evaluate and interpret these empirical results on an overall basis using R2, adjusted R2, and F statistic. (B) Which regression analysis problem might apply to this regression estimate? Why?(C)Which independent variables are statistically significant at the 95% confidence level?(D)Is quantity demanded sensitive to own price (P)? (E) Austin, Texas, was a typical market covered by this analysis. During 2020 in the Austin market, price (P) was $5, advertising (A) was $30,000, income (I) was an average $55,000 per household, and the number of household formations (HF) was 4000. Calculate and interpret the relevant advertising point elasticity. (F) Given the values of the independent variables in part E above, give a point estimate and aninterval estimate of Q with 95% confidence level. (G)Assume that the preceding model and data are relevant for the coming period. Estimate theprobability that the Austin store will make a profit during 2021 if total costs are projected to be $300000.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more