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c) If the price or cost of college and university education increased by
10% and, at the same time, incomes also increased by 10%, what
would be the change in the demand for college and university
education?
Problem 15: Starting with the data from Problem 6 and the data of the
price of a related commodity for the years 1986 to 2005 given below,
we estimated the regression for the quantity demanded of a commodity
(which we now relabel Qx), on the price of the commodity (which we
now label Px), consumer income (which we now label Y), and the price
of the related commodity (Pz), and we obtained the following results
b) Evaluate the above regression results
c) What type of commodity is Z? Can you be sure?
Appendix problem 2:
a) Estimate the regression in Problem 5 based on Table 5-6 using
Excel’s regression function in the Data Analysis menu.
b) Using the coefficients found in the regression estimate, enter a
formula based in cells C6 through J6 to forecast the sales when quality
control goes from $2 million to $9 million a year.
c) Graph both the actual data and the forecast using the graphing
tools. Does the forecast vary much from the actual data
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BUSI 620 Week 3 Discussion Board 3
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