Answer to Question #222737 in Macroeconomics for reha

Question

The model standard error is 9.18. How do you use this estimation for business decisions?

6. Check the significance of this model base on a computer printout as well as a manual process at a 95% significant level.

7. Construct the simple demand function for this model and graphically show it.

8. Construct the total revenue function (TR) and determine total revenue maximize output level.

9. Measure and interpret 0.5 elasticity of demand and advertising elasticity of demand.

Answer 1

a) Parameters refers to the things with which the output or behavior of something is compared.

Step 2

a) There are various significant parameters that could impact the demand for deluxe room are as follows:-

1) Price of a deluxe room in sh

2) Visitors per capita income

3) Price of a deluxe room in CG

4) Average advertising expenditure in sh

5) Customer satisfaction index

Answer: Therefore, these are the various parameters that could impact the demand for deluxe room.