Author Question: How would you evaluate the quality of this equation overall? Do you have any concerns? Explain. ... (Read 20 times)

brutforce · **on:** Jul 1, 2018

How would you evaluate the quality of this equation overall? Do you have any concerns? Explain.

What will be an ideal response?

Question 2

A firm uses ________ for goods which the consumer takes pride in owning.

A) price skimming
B) prestige pricing
C) penetration pricing
D) predatory pricing

amit · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

The overall equation is significant, as shown by the F-test. The R2 value is reasonably high. One variable is not significant (might be desirable to re-estimate the equation without it, although the inclusion of irrelevant variables does not affect the properties of the OLS model). The sample size is sufficiently large. There are no significant concerns. Other answers are possible.

Answer to Question 2

B