Business Economics - Complete the hypothetical

Business Economics

1. The concept of elasticity for demand is importance for determining the prices of various factors of production. Discuss the various factors that influences the price elasticity of demand.

2. Complete the hypothetical table below and explain in brief, the behaviour of each type of cost.

Quantity

Total Fixed Cost

Total Cost

Total Cost

Average Fixed Cost

Average Cost

Average Total Cost

Marginal Cost

0

0

1

25

2

40

3

50

4

60

5

100

80

6

110

7

150

8

300

9

500

10

900

3. Demand forecasting in an organisations plays a vital role in business organisations. It provides reasonable data for the organization 's capital investment and expansion decision.

a. Keeping the above statement in consideration. Discuss the various steps involved in demand forecasting.

b. Discuss the various needs for demand forecasting in business organisations

Business Statistics

TABLE GIVEN BELOW

Mfr 1- Life of bulb in hrs

Mfr 2- Life of bulb in hrs

684

819

831

907

859

952

893

994

922

1016

939

1038

972

1096

1016

1153

697

836

835

912

860

959

899

1004

924

1018

943

1072

977

1100

1041

1154

720

888

848

918

868

962

905

1005

1. A sample of 20 bulbs each was picked from the manufacturing facility of two bulb manufacturers &ndash Mfr 1 and Mfr 2. The table above provides the life of bulbs for the two manufacturers. You are a quality testing person and are presented with this data:

i. Which manufacturer has better performance on the life of bulbs What are the different measures you can consider to calculate performance

ii. How would you assess the variability in performance of the two bulb manufacturers

iii. Would your answer to the first question change based on your assessment of the variability in performance of bulb manufacturers

2. For the data in the table below:

i. What do the correlation coefficients of 1, shaded in yellow, indicate

ii. The highest correlation coefficient is 0.84, shaded in green. What can you infer from that score about the relationship between the two s

iii. The two lowest correlation coefficients are 0.06 and -0.06. What can you infer from that score about the relationship between the two s

r correlation coefficient

Assets

Expense Ratio

Return 2006

3-Year Return

5-Year Return

Assets

1

Expense Ratio

-0.29

1.00

Return 2006

0.08

-0.13

1.00

3-Year Return

0.07

-0.11

0.70

1.00

5-Year Return

0.06

-0.06

0.59

0.84

1.00

3. The Indian cricket team is visiting New Zealand to play a test series comprising five matches. In each match, assume that the Indian team has a 70% chance of winning. Further, assuming that the matches are independent of each other, what is the probability that:

a. The Indian team will win the series

b. The team will win all five matches, and that the team will lose all.