Discussion:
1 The number of deliveries per week for a sample of six customers.
3 4 5 6 2 4
A. Calculate the mean, median, and mode measures of central tendency for the number of deliveries per week. Which measure does the best job of describing central tendency for this variable?
B. Calculate the range, variance, and standard deviation for this data series. Which measure
does the best job of describing the dispersion in this variable?
2 Operating experience during the last year suggests the following demand function for its spring water:
Q = 250 - 100P +0.0001Pop + .003I + 0.003A
where Q is quantity in thousands of five-gallon containers, P is price in dollars, Pop is population, I is disposable income per capita, and A is advertising expenditures.
A. Determine the demand curve faced by CPI in a typical market where P = $ 4, Pop = 4,000,000, I = $ 50,000, and A = $ 400,000. Show the demand curve with quantity expressed as a function of price, and price expressed as a function of quantity.
B. Calculate the quantity demanded at prices of $ 5, $ 4, and $ 3.
C. Calculate the prices necessary to sell 1,250, 1,500, and 1,750 thousands of five-gallon containers.
3 Operating experience during the past year suggests the following demand function for its knife sets:
Q = 4,000 - 4,000P + 10,000N + .025I + 0.4A
where Q is quantity, P is the price, N is the average rating of television programs during which SEI advertises knives, I is average disposable income per household, and A is advertising expenditures.
A. Determine the demand curve faced by SEI in a typical market where P = $ 35, N = 18.5
I = $ 44,000, and A = $ 500,000. Show the demand curve with quantity expressed as a function of price, and price expressed as a function of quantity.
B. Calculate the quantity demanded at prices of $ 40, $ 35, and $ 30.
C. Calculate three prices necessary to sell 264,000, 292,000, and 320,000 sets of knives.