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{"ops":[{"insert":"Suppose that William Berl, the manager of the Oldsmobile division of the General motors Corporation, has estimated the following regression equation for Oldsmobile \nQ"},{"attributes":{"script":"sub"},"insert":"0"},{"insert":" = 90,000 \u2013 200P"},{"attributes":{"script":"sub"},"insert":"0"},{"insert":" + 3,000N + 100I +50P"},{"attributes":{"script":"sub"},"insert":"C"},{"insert":" \u2013 2,000P"},{"attributes":{"script":"sub"},"insert":"g"},{"insert":" + 5A\n\u00a0\nWhere Q"},{"attributes":{"script":"sub"},"insert":"0"},{"insert":" = Quantity de"},{"attributes":{"italic":true},"insert":"mand of Oldsmobiles per year"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"P"},{"attributes":{"italic":true,"script":"sub"},"insert":"0"},{"attributes":{"italic":true},"insert":" = price of Oldsmobiles, in dollars"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"N = population of the United States, in millions"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"I = per capita disposable income, in dollars"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"P"},{"attributes":{"italic":true,"script":"sub"},"insert":"C"},{"attributes":{"italic":true},"insert":" = price of Chevrolet automobiles, in dollars"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"P"},{"attributes":{"italic":true,"script":"sub"},"insert":"g"},{"attributes":{"italic":true},"insert":"= real price of gasoline, in cents per gallon"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"A = advertising expenditures by Oldsmobile, in dollars per year"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"\u00a0"},{"insert":"\n"},{"attributes":{"italic":true},"insert":"a)\u00a0\u00a0\u00a0Indicate the change in the number of Oldsmobiles purchased per year (Q"},{"attributes":{"italic":true,"script":"sub"},"insert":"0"},{"attributes":{"italic":true},"insert":") for each unit change in the independent, or explanatory, variables. "},{"insert":"\nb)\u00a0\u00a0\u00a0"},{"attributes":{"italic":true},"insert":"Find the value of Q"},{"attributes":{"italic":true,"script":"sub"},"insert":"0"},{"attributes":{"italic":true},"insert":" if the average value of P"},{"attributes":{"italic":true,"script":"sub"},"insert":"C"},{"attributes":{"italic":true},"insert":" = $10,000, N = 220 million, I = $12,000, P0 = $9,000, P"},{"attributes":{"italic":true,"script":"sub"},"insert":"g"},{"attributes":{"italic":true},"insert":" = 100c, and A = $200,000."},{"insert":"\nc)\u00a0\u00a0\u00a0"},{"attributes":{"italic":true},"insert":"Derive the equation for the demand curve for Oldsmobiles, and "},{"insert":"\nd)\u00a0\u00a0\u00a0"},{"attributes":{"italic":true},"insert":"Plot it"},{"insert":"\n"}]}

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