VCRs question

[Carla Nunes]

Hi guys,

This is what I got for the VCRs:

	Coefficients
Intercept	-7.164332985
t	0.381303741

1) F(5) = 0.00518,  % prediction error = 1.71%

2) S(t) = 241,000 / 1 + e^-(-7.16 + 0.38t)
%error for 1977-82 = 4.22%

3) In 1984

Let me know if you got the same.

[Adi Aloni]

I got the same regression results but I wasn’t sure how to proceed… I’ll take another look at it later and post the results, or contact you for explanations J

[Spencer]

200h if anyone wants to join the party now

Sent from my iPhone

[Gabriel Bowers]

Hi Carla,

I got the same answers as you did.

 

Gabriel

[Savita Raina]

Spenser I looked for you but didnt find you so utimately came back home.... Is any going to do group study tomorrow

 

Savita

[Spencer Hsu]

weird, we are still here :)

[Savita Raina]

hmmmm.....i looked for u all in roomes of 300 and then came to second floow too. Anyways no problem...good luck studying

 

Savita

[Adi Aloni]

The only bright side to taking the exam Tuesday at 8pm is that maybe we can get some tips…

 

Adi.

[Carla Nunes]

The other good thing is that we forwarded our clocks 1 hr, so it feels like we'll be taking the exam at 7pm.  ;)

It'd be good to hear about the exam for sure!

[Carla Nunes]

The other good thing is that we forwarded our clocks 1 hr, so it feels like we'll be taking the exam at 7pm.  ;)

It'd be good to hear about the exam for sure!

[cponcet...@gmail.com]

Hi guys,

From the blur I remember:

1) relevant costs problem, very similar to the HW about ATI (which costs to include at capacity, not capacity, economic profit) 20%

2) Article about companies not passing on cost savings to consumers when commodities' prices go down. Is this profit-maximizing, show why. 20%

3) SF Ballet: Season tickets have gone down after each price increase. New consultant recommends price "that will fill the house". Is this a profit maximizing strategy, do you agree with the consultant 20%

4) Regression problem of a cost function for Intel chips (similar to last HW problem), some dummy variables like seasonality, production problem in one month, move to a different location
a) Describe the equation you chose, give the appropriate measures 25%
b) some questions like effect of a dummy variable, cost of the 10,000th chip, elasticities 10%
c) graph AVC and MC at 1,000 units and 10,000 units 5%

Hope this helps!

Caroline

[Spencer Hsu]

What did you get for number 4 on the vcr one? was it 1981?

On Mon, Mar 14, 2011 at 7:59 PM, Gabriel Bowers <gabrie...@gmail.com> wrote:

[Carla Nunes]

Thanks, Caroline.  This is very helpful!

Enjoy your vacation!  :)

[Gabriel Bowers]

 

Regarding last night's email...

 

We're not supposed to know what's on the exam.  As well, we are giving ourselves an unfair advantage over fellow students who would not receive this information. 

 

Finally, I want to point out that while some of us feel that it's okay to share this type of information, there are others of us on this google group (such as myself) who do not want to receive it. 

 

Please let's keep any further email today to helping each other study for the exam tonight...

 

Gabriel

[Savita Raina]

Hi Guys,

 

I missed all classes on pricing as had ot been keeping well. Can someone explain the mark-pricing/ Optimal pricing. If anyone of you is coming school early.please let me know.

 

Thanks

Savita

[Caroline Poncet Chapman]

Gabriel, sorry about that.

Professor did say the two exams were different.

Caroline

[Gabriel Bowers]

Caroline,

Thanks for letting us know.  In that case, I feel better towards knowing what was on last night's test.

Gabriel

[Adi Aloni]

Good morning Gabe,

I didn’t mean to put anyone in an uncomfortable situation.

Sorry that you feel that way.

Adi.

[Spencer Hsu]

Is anyone going to be going to campus early today?

[alex smirnov]

i'll be at the library in about half an hour (3rd floor)

Caroline, thank you very much.  Even if the exams are different, your input is very much appreciated.

Gabe, although you are older, and presumably wiser, I think you will eventually figure out that life is full of unfair advantages...how many of the 6+ billion people do you think can afford to live in the Bay Area and go to a private university?  ;)    it is noble that you feel that way though.

[Sam]

I booked Leavey Room 300G from 6-8 PM. It is not booked before that,
but I can only book 2 hours. If anyone else wants to book the time
before that, we can keep it as a group study spot.

http://www.scu.edu/rooms/

-Sam

On Mar 15, 9:49 am, alex smirnov <alex.smir...@gmail.com> wrote:
> i'll be at the library in about half an hour (3rd floor)
>
> Caroline, thank you very much.  Even if the exams are different, your input
> is very much appreciated.
>
> Gabe, although you are older, and presumably wiser, I think you will
> eventually figure out that life is full of unfair advantages...how many of
> the 6+ billion people do you think can afford to live in the Bay Area and go
> to a private university?  ;)    it is noble that you feel that way though.
>

> On Tue, Mar 15, 2011 at 9:37 AM, Spencer Hsu <sphs...@gmail.com> wrote:
> > Is anyone going to be going to campus early today?
>

> > On Tue, Mar 15, 2011 at 8:51 AM, Adi Aloni <aloni....@gmail.com> wrote:
>
> >> Good morning Gabe,
>
> >> I didn’t mean to put anyone in an uncomfortable situation.
>
> >> Sorry that you feel that way.
>
> >> Adi.
>

> >> *From:* econ_401_w...@googlegroups.com [mailto:
> >> econ_401_w...@googlegroups.com] *On Behalf Of *Gabriel Bowers
> >> *Sent:* Tuesday, March 15, 2011 8:27 AM
> >> *To:* econ_401_w...@googlegroups.com
> >> *Subject:* Re: Re: Anybody heard anything from today's exam?

>
> >> Caroline,
>
> >> Thanks for letting us know.  In that case, I feel better towards knowing
> >> what was on last night's test.
>
> >> Gabriel
>
> >> On Tue, Mar 15, 2011 at 8:21 AM, Caroline Poncet Chapman <
> >> cponcetchap...@gmail.com> wrote:
>
> >> Gabriel, sorry about that.
>
> >> Professor did say the two exams were different.
>
> >> Caroline
>

> >> On Tue, Mar 15, 2011 at 8:12 AM, Savita Raina <savita.ra...@gmail.com>

> >> wrote:
>
> >> Hi Guys,
>
> >> I missed all classes on pricing as had ot been keeping well. Can someone
> >> explain the mark-pricing/ Optimal pricing. If anyone of you is coming school
> >> early.please let me know.
>
> >> Thanks
>
> >> Savita
>

> >> On Tue, Mar 15, 2011 at 8:04 AM, Gabriel Bowers <gabrielbow...@gmail.com>

> >> wrote:
>
> >> Regarding last night's email...
>
> >> We're not supposed to know what's on the exam.  As well, we are giving
> >> ourselves an unfair advantage over fellow students who would not receive
> >> this information.
>
> >> Finally, I want to point out that while some of us feel that it's okay to
> >> share this type of information, there are others of us on this google group
> >> (such as myself) who do not want to receive it.
>
> >> Please let's keep any further email today to helping each other study for
> >> the exam tonight...
>
> >> Gabriel
>

> >> On Tue, Mar 15, 2011 at 7:22 AM, Carla Nunes <ccrnu...@gmail.com> wrote:
>
> >> Thanks, Caroline.  This is very helpful!
>
> >> Enjoy your vacation!  :)
>

> >> On Mon, Mar 14, 2011 at 10:21 PM, <cponcetchap...@gmail.com> wrote:
>
> >> Hi guys,
>
> >> From the blur I remember:
>
> >> 1) relevant costs problem, very similar to the HW about ATI (which costs
> >> to include at capacity, not capacity, economic profit) 20%
>
> >> 2) Article about companies not passing on cost savings to consumers when
> >> commodities' prices go down. Is this profit-maximizing, show why. 20%
>
> >> 3) SF Ballet: Season tickets have gone down after each price increase. New
> >> consultant recommends price "that will fill the house". Is this a profit
> >> maximizing strategy, do you agree with the consultant 20%
>
> >> 4) Regression problem of a cost function for Intel chips (similar to last
> >> HW problem), some dummy variables like seasonality, production problem in
> >> one month, move to a different location
> >> a) Describe the equation you chose, give the appropriate measures 25%
> >> b) some questions like effect of a dummy variable, cost of the 10,000th
> >> chip, elasticities 10%
> >> c) graph AVC and MC at 1,000 units and 10,000 units 5%
>
> >> Hope this helps!
>
> >> Caroline
>

> >> On Mar 14, 2011 9:54pm, Carla Nunes <ccrnu...@gmail.com> wrote:
> >> > The other good thing is that we forwarded our clocks 1 hr, so it feels
> >> like we'll be taking the exam at 7pm.  ;)
>
> >> > It'd be good to hear about the exam for sure!
>

[Adi Aloni]

Has anyone looked at this problem?

I calculated the marginal profit from adding sales reps but I’m not sure how to determine the optimal allocation.

Adi.

[Christy Fairlie]

its in the book - chapter 5.

[Christy Fairlie]

i'll book from 4-6

[Adi Aloni]

Thanks Christy. I guess I have to read the book more carefully…

[Savita Raina]

i have booked 300 C from 4-6PM

[Carla Nunes]

Hi Adi,

This one is also on the book.  You determine the marginal profit, and then choose to allocate them based on who gives the highest MP until the max is reached.

So, for large accounts we have:

0 - 2, MP = 150
2 - 5  MP = 100
5 - 8  MP = 50 
8 - 13  MP = 30
13 - 16  MP = 20
16 - 20 MP = 20

and for small accounts we have:

0 - 5, MP = 80
5 - 8  MP = 70
8 - 10  MP = 40 
10 - 16  MP = 40
16 - 20 MP = 35

Considering those numbers, we have:

the first 5 employees will be dedicated to large
the next 8 will dedicate to small
the next 3 will dedicate to large
the next 8 will dedicate to small
 
Let me know if you understood.  I can go over w/ you in person.

[David Song]

yep thanks Carla. exactly like the book. although I don't think he's
gonna give an easy question like that on the exam, hope he takes it
easy on us

[Xiuya Li]

Hi All,

 

Some thought on the questions below, please feel free to comment:

 

2) Should be using that P,MR,AR (&MC=AVC) vs. Q curve, the triangle left over should also be taken to maximize the profit. --> lower price!

 

3) No. According to the AR,MR,Revenue vs. Q curve, there are 2 revenue maximizing points for Q (and Price). The right side is full house, left side is not full house but with the same revenue, consider close to 0 variable cost, the left side (smaller Q) should be used as profit maximizing point (increase price!!)

 

4)  VC = aV^bQ^cD^dummy

     b != 0, learning

     c != 1, Scale of economy

 

    AVC = aV^bQ^cD^dummy

    

     b != 0, learning

     c != 0, Scale of economy (Note difference from above, 0 vs. 1).

 

     In case of no scale of economy (CRS aka Constant Resturn to Scale, c=0, Q is not in AVC, AVC = aV^bD^dummy), MC = AVC = constant line along Q.

 

Please let me know your thought.

 

Thanks!
Ted