Home / Questions / You work as an economist for a major oil company. The CEO asks for the following in a meet...
You work as an economist for a major oil company. The CEO asks for the following in a meeting:
Should the company lower/raise the price of natural gas in the state of ______________?
What is the price elasticity of demand (show the Excel regression output)?
What will happen to our revenue if we do lower/raise the price?
What do you recommend?
Instructions
1)Download the data into Excel
2)Isolate the price data and sales data into one sheet
3)Make sure the dates line up
4)Calculate the natural logarithm of each variable
5)Make sure version of Excel has Data Analysis add-in
6)Run a regression of price (x variable) and sales (y variable) with output in new worksheet
7)The coefficient is your elasticity
Data:
http://www.eia.gov/naturalgas/data.cfm#consumption
Aug 23 2021 View more View Less
Coca-cola markets powerade as a sports drink that competes with gatorade. Competition for sports drinks is fierce where they are sold in the coolers of convenience stores...
Aug 06 2020Use the indicated substitution to convert to du (your answer should not involve x).A. In the integrals below, substutute u=3x+1(i) ∫e^(3x+1)dx =∫ du(ii) ∫xe^(3x+1)dx = ∫ ...
Jun 07 2021D&B Ice Cream budgeted sales of 136,000 units of flavor C, assuming that the company would have 16 percent of 850,000 units sold in a particular market. The actual result...
Jul 25 2021A bimetallic bar (or composite bar) of square cross section with dimensions 2b 2b is constructed of two different metals having moduli of elasticity E1 and E2 (see fig...
Jun 29 2020Write the letter of the correctly punctuated sentence in the space provided. Use a dictionary or reference manual as needed.a. Our operating revenue for the past year (se...
Jul 14 2021In a multifactor APT model, the coefficients on the macro factors are often called A. systematic risk. B. factor sensitivities. C. idiosyncratic risk. D. factor betas. ...
Aug 08 2020Derive an equation for the work of mechanically reversible, isothermal compression of 1 mol of a gas from an initial volume V1 to a final volume V2 when theequation of th...
Jul 31 2020SHOW WORK PLEASE!Complete problem: Required Rate of Return Show your work. Suppose rRF = 6%; rM = 10%; and rA = 14%a. Calculate Stocks A’s beta.b. If Stock A’s beta were ...
Aug 17 2020The ledger of Gamma Corporation at December 31, 2010, after the books have been closed, contains the following stockholdersâ€™ equity accounts. Preferred Stock (10,000 s...
May 30 2020How much would $1 growing at 5% per year be worth after 100 years? What would the FV be if the growth rate were 10%?
Jun 02 2021