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You are the manager of a large automobile dealership who wan

You are the manager of a large automobile dealership who wants to learn more about the effectiveness… Show more You are the manager of a 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 options) over this period of time. a. Graph this information on a scatter plot. Estimate teh demand equation. what do the regression results indicate about the desirability of discounting the price? Explain Month Price Quantity January 12500 15 February 12200 17 March 11900 16 April 12000 18 May 11800 20 June 12500 18 July 11700 22 August 12100 15 September 11400 22 October 11400 25 November 11200 24 December 11000 30 January 10800 25 February 10000 28 b. what other factors besides price might be included in this equation? Do you foresee any difficulty in obtaining these additional data or incorporating them in the regression analysis? • Show less

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