You are the manager of large automobile dealership who wants to learn

YOU are the manager of large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months .Following are the average negotiated prices for each month and quantities sold of a basic model (adjusted for various option ) over this period of time .

 

A) Graph this information on a scatter plot.Estimate the demand equation . What do the regression results indicate about the desirability of discounting price ?Explain

 

 

 

     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

 

 

Month Price Quantity
Jan 12500 15
Feb 12200 17
Mar 11900 16
Apr 12000 18
May 11800 20
Jun 12500 18
Jul 11700 22
Aug 12100 15
Sep 11400 22
Oct 11400 25
Nov 11200 24
Dec 11000 30
Jan 10800 25
Feb 10000 28

      

 B) What other factors beside price might be included in this equations ? Do you foresee any difficulties in obtaining thees additional data or in cooperating them in the regression analysis?

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