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Question: confidence intervals question 4 you are a manager in charge...

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Confidence Intervals Question 4: You are a manager in charge of monitoring cash flow at Toyota. You must determine how much to change the price of the Toyota Prius next year so that Toyotas overall revenues from both the Toyota Prius and the Toyota Corolla will increase by $200,000 So, you collect monthly data on the prices you charged in the past on the Prius and Corolla, and on the demand for the Prius and Corolla and determine the following regression lines: In(RQ) 9-0.4 In(RP)0.2 In(CP) In(CQ)4-0.8ln(CP) 0.3 In(RP) for variables RQ-demand quantity for the Prius, RPprice for the Prius, CQ demand quantity for the Corolla CPprice for the Corolla You also collect data on revenue, and find out that, last year, Toyota earned about $300 million from sales of the Prius about $200 million from sales of the Corolla a) How much should you change the price of the Toyota Prius next year so that Toyotas overall revenues from both the Toyota Prius and the Toyota Corolla will increase by $200,000? b) If the parameter estimate of the own price elasticity of demand for the Toyota Prius has a 95% confidence interval of-1 to-02, then compute the upper and lower bounds on the 95 percent confidence interval for how much you should change the price of the Toyota Prius next year so that Toyotas overall revenues from both the Toyota Prius and the Toyota Corolla will increase by $200,000 Answer to Question:
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