Biology homework help
Biology homework help. Q1: Ch 4 (20%)The director of marketing at Vanguard Corporation believes that sales of the companys Bright Side laundry detergent (S) are related to Vanguards own advertising expenditure (A), as well as the combined advertising expenditures of its three biggest rival detergents (R). The marketing director collects 36 weekly observations on S, A, and R to estimate the following multiple regression equation:S = a + bA + cRwhere S, A, and R are measured in dollars per week. Vanguards marketing director is comfortable using parameter estimates that are statistically significant at the 0.10 level or better. The regression output from the computer is as follows:DEPENDENT VARIABLE: S R- SQUARE F- RATIO P- VALUE ON F OBSERVATIONS: 36 0.2964 4.781 0.0150PARAMETER STANDARDVARIABLE ESTIMATE ERROR T- RATIO P- VALUEINTERCEPT 175086.0 63821.0 2.74 0.0098A 0.8550 0.3250 2.63 0.0128R ?0.284 0.164 ?1.73 0.0927a. Interpret the sign of coefficients a, b, and c.b. Does Vanguards advertising expenditure have a statistically significant effect on the sales of Bright Side detergent? Explain, using the appropriate p-value.c. Does advertising by its three largest rivals affect sales of Bright Side detergent in a statistically significant way? Explain, using the appropriate p-value.d. What fraction of the total variation in sales of Bright Side remains unexplained? What can the marketing director do to increase the explanatory power of the sales equation? What other explanatory variables might be added to this equation?e. What is the expected level of sales each week when Vanguard spends $30,000 per week and the combined advertising expenditures for the three rivals are $200,000 per week?Q7: CH 7 (20%)Wilpen Company, a price- setting firm, produces nearly 80 percent of all tennis balls purchased in the United States. Wilpen estimates the U. S. demand for its tennis balls by using the following linear specification:Q = a + bP + cM + dPRwhere Q is the number of cans of tennis balls sold quarterly, P is the wholesale price Wilpen charges for a can of tennis balls, M is the consumers average household in-come, and PR is the average price of tennis rackets. The regression results are as follows:DEPENDENT VARIABLE: Q R- SQUARE F- RATIO P- VALUE ON F OBSERVATIONS: 20 0.8435 28.75 0.001PARAMETER STANDARDVARIABLE ESTIMATE ERROR T- RATIO P- VALUEINTERCEPT 455120.0 220300.0 1.93 0.0716P ?37260.6 12587 ?22.96 0.0093M 1.49 0.3651 4.08 0.0009PR ?1456.0 460.75 ?3.16 0.0060a. Discuss the statistical significance of the parameter estimates b, c, and d using the p-values. Given the signs of c and d, please comment on the good category of tennis ball and its relationship with tennis rackets.Wilpen plans to charge a wholesale price of $1.65 per can. The average price of a tennis racket is $110, and consumers average household income is $24,600.b. What is the estimated number of cans of tennis balls demanded?c. At the values of P, M, and PR given, what are the estimated values of the price (E), income (EM), and cross- price elasticities (EXR) of demand?d. What will happen, in percentage terms, to the number of cans of tennis balls demanded if average household income increases by 20 percent?e. What will happen, in percentage terms, to the number of cans of tennis balls demanded if the average price of tennis rackets increases 25 percentQ5: Ch 6 (20%)Assume that the demand for cosmetic or plastic surgery is price inelastic. Are the following statements true or false? Explain.a. When the price of plastic surgery increases, the number of operations decreases.b. The percentage change in the price of plastic surgery is less than the percentage change in quantity demanded.c. Changes in the price of plastic surgery do not affect the number of operations.d. Quantity demanded is quite responsive to changes in price.e. If more plastic surgery is performed, expenditures on plastic surgery will decrease.