# Question: consider the following three market price data a enter the...

###### Question details

Consider the following three market price data.

(a) Enter the following sales data using Excel.

sales = x1 |
sales = x2 |
sales = x3 |
Price A ($) |

10 | 10 | 10 | 100 |

10 | 10 | 13 | 99 |

10 | 10 | 15 | 98 |

12 | 10 | 10 | 98 |

12 | 12 | 10 | 97 |

12 | 14 | 10 | 95 |

14 | 10 | 10 | 94 |

(b) Use LINEST to find a linear price function for the above
data for three markets. (Note: You will be using the format (Price
= *b* + *m*1**x1* + *m2***x2* +
*m3***x3*) where Price = *P*(*x1*,
*x2*, *x3*) and the values for *b*,
*m1*, *m2*, and *m3* are all numerical values.
Enter all values correct to 2 decimal places.)

*P*(*x1*, *x2*, *x3*)
= + **x1* + **x2*
+ **x3*

(c) Use the values for *b* and the three slopes to predict
the price when the sales are *x1* = 15, *x2* = 20,
and *x3* = 15.

*P*(15, 20, 15) = $

(d) Repeat (a) - (c) when one additional price data is used where
*x1* = 14, *x2* = 12, *x3* = 12 and Price
*A* = $89. (Note: Add this new information into your
spreadsheet by adding an extra row at the bottom.)

New linear price function

*P*(*x1*, *x2*, *x3*)
= + **x1* + **x2*
+ **x3*

New price prediction

*P*(15, 20, 15) = $