In a destructive test of product quality, a briefcase manufacturer places each of a simple random sample of the day’s production
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The table is missing in the question. The table is attached below.
Solution :
Let X = appraised value
Y = area (square feet)
The regression line is given by :
The regression line is :
To estimate the error variance, we have:
Error variance,
Answer:
a) The demand function is
b) The nightly revenue is
c) The profit function is
d) The entrance fees that allow Swing Haven to break even are between 10.03 and 23.41 dollars per guest.
Step-by-step explanation:
a) Lets find the slope s of the demand:
Since the demand takes the value 79 in 7, then
b) The nightly revenue can be found by multiplying q by p
c) The profit function is obtained from substracting the const function C(p) from the revenue function R(p)
d) Lets find out the zeros and positive interval of P. Since P is a quadratic function with negative main coefficient, then it should have a maximum at the vertex, and between the roots (if any), the function should be positive. Therefore, we just need to find the zeros of P
Therefore, the entrance fees that allow Swing Haven to break even are between 10.03 and 23.41 dollars per guest.