How could a manager use the information contained in this regression equation?
What will be an ideal response?
Many answers are possible. A manager might note that demand is elastic, and thus that sales might respond to a price decrease. Likewise, sales should respond to increases in advertising. Sales are less likely to be impacted by income changes. The equation could be used to forecast expected sales based on changes in one or more of the variables. The equation could be used to help in coordinating production plans or with other parts of the firm.
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Since mid-2000, the Fed's only operating target has been
A) M2 money supply growth. B) the discount rate. C) the consumer price index. D) the federal funds rate.
Those economists who believe that monetary policy is more powerful than fiscal policy argue that the
a. LM curve is vertical. b. IS curve is horizontal. c. interest rate elasticity of investment is large. d. interest rate elasticity of investment is small.