PRICE
DEMAND
$ 11.00
2100
$ 13.00
2020
$ 15.00
1980
$ 17.00
1875
Solutions to Homework set 6 ANLY500
8.2. Consumer Products Price-Demand Data
2150
DEMAND
2100
2050
2000
y = -35.75x + 2494.3
R² = 0.9731
1950
1900
1850
$- $5.00 $10.00 $15.00 $20.00
8.8. Consulting Group
y = 46.771x + 212590
R² = 0.9726
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Overhead Costs
– 2,000.00 4,000.00 6,000.00 8,000.00 10,000.00
b. As billable hours increase by 1, overhead costs increase by $46.77. The fixed component of $212,590 represents the
fixed overhead independent of billable hours.
c. 1000 billable hours gives $ 259,361. The marginal increase in overhead is 259,361 – 212590 = 47,041. If the job only
contributes $38,000, it would not be attractive.
8. 21. 2010 Major League Baseball Statistics
Won
Lost
Runs
Hits
Double
s
Hom
e
Runs
Runs
Batte
d In
Earned
Run
Averag
e
Strik
e
Outs
Walk
s
https://www.coursehero.com/file/29624351/Homework6-solutionspdf/
Won
1.00
Lost
(1.00
)
1.00
Runs
0.78
(0.78
)
1.00
Hits
0.45
(0.45
)
0.68
1.00
Doubles
0.33
(0.33
)
0.61
0.43
1.00
Triples
0.21
(0.21
)
0.36
0.21
0.12
Home Runs
0.44
(0.44
)
0.73
0.35
0.56
1.00
Runs Batted In
0.76
(0.76
)
0.99
0.65
0.62
0.76
1.00
Earned Run
Average
(0.68
)
0.68
(0.16
)
0.09
0.14
0.09
(0.13)
1.00
Strike Outs
(0.23
)
0.23
0.00
(0.42
)
0.14
0.20
0.05
0.19
1.00
Walks
0.53
(0.53
)
0.68
0.21
0.42
0.31
0.67
(0.24)
0.36
1.00
Based on the correlation matrix, we might model wins as a function of Hits, Doubles, Triples, Home Runs, Strike
Outs
SUMMARY OUTPUT
Regression
Statistics
Multiple R
0.9796
R Square
0.9596
Adjusted R
Square
0.9414
Standard
Error
2.6648
Observations
30
ANOVA
df
SS
MS
F
Significanc
e F
Regression
9
3370
374.4
52.7
6E–12
Residual
20
142
7.101
Total
29
3512
Coefficient
s
Standar
d Error
t Stat
P-
valu
e
Lower 95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept
106.93
16.04
6.666
0.00
73.47
140.4
73.47
140.4
Runs
0.1463
0.099
1.478
0.16
-0.06
0.353
-0.06
0.353
Hits
-0.034
0.016
–
2.096
0.05
-0.07
-0
-0.068
-0
Doubles
0.0126
0.026
0.484
0.63
-0.04
0.067
-0.042
0.067
Triples
0.0147
0.088
0.166
0.87
-0.17
0.199
-0.17
0.199
Home Runs
-0.05
0.039
–
1.276
0.22
-0.13
0.031
-0.13
0.031
Strike Outs
-0.013
0.006
–
1.992
0.06
-0.03
6E–04
-0.026
6E–04
Runs Batted
In
0.0086
0.097
0.089
0.93
-0.19
0.21
-0.193
0.21
eliminat
e
Earned Run
Average
-13.03
1.621
–
8.041
0.00
-16.4
-9.65
-16.41
-9.65
Walks
-0.032
0.018
–
1.737
0.10
-0.07
0.006
-0.069
0.006
SUMMARY OUTPUT
Regression
Statistics
Multiple R
0.9796
Regression
421.2
Residual
142.1
6.765
Total
s
d Error
e
95%
95.0%
95.0%
Intercept
107.04
15.61
6.857
0.00
74.57
139.5
74.57
139.5
Runs
0.1547
0.028
5.454
0.00
0.096
0.214
0.096
0.214
Hits
-0.034
0.015
–
2.296
0.03
-0.07
-0
-0.065
-0
Doubles
0.0129
0.025
0.508
0.62
-0.04
0.065
-0.04
0.065
Adjusted R
0.9441
Error
2.6011
Observations