z-Statistics. Fantastic Footwear, Inc., of Freeport, Maine, has retained you to aid the firm in an evaluation of its marketing strategy. Fantastic Footwear shoes are marketed through "factory outlet" malls located along the eastern seaboard. A move to extend the company's market to Midwestern and Western states is currently being contemplated.
A marketing research group conducted an empirical analysis of demand for the company's shoes during 2008 in twenty regional markets and found the following (standard errors in parentheses):
Standard error of the estimate = 500
where Q = quantity sold (in pairs of shoes), P = price (in dollars), P_X is the average price of shoes in competitor stores, and M is the distance in miles to the nearest competing factory outlet mall.
Champaign-Urbana, Illinois is a potential Midwestern market with economic characteristics typical of those eastern markets included in the empirical analysis. In Champaign-Urbana, expected levels are: P = $60, P_X = $80 and M = 200 miles.

Question

z-Statistics. Fantastic Footwear, Inc., of Freeport, Maine, has retained you to aid the firm in an evaluation of its marketing strategy. Fantastic Footwear shoes are marketed through "factory outlet" malls located along the eastern seaboard. A move to extend the company's market to Midwestern and Western states is currently being contemplated.
A marketing research group conducted an empirical analysis of demand for the company's shoes during 2008 in twenty regional markets and found the following (standard errors in parentheses):

Standard error of the estimate = 500
where Q = quantity sold (in pairs of shoes), P = price (in dollars), P_X is the average price of shoes in competitor stores, and M is the distance in miles to the nearest competing factory outlet mall.
Champaign-Urbana, Illinois is a potential Midwestern market with economic characteristics typical of those eastern markets included in the empirical analysis. In Champaign-Urbana, expected levels are: P = $60, P_X = $80 and M = 200 miles.

Quizplus · Accepted Answer

The Answer of z-Statistics. Fantastic Footwear, Inc., of Freeport, Maine, has retained you to aid the firm in an evaluation of its marketing strategy. Fantastic Footwear shoes are marketed through "factory outlet" malls located along the eastern seaboard. A move to extend the company's market to Midwestern and Western states is currently being contemplated. A marketing research group conducted an empirical analysis of demand for the company's shoes during 2008 in twenty regional markets and found the following (standard errors in parentheses): Standard error of the estimate = 500 where Q = quantity sold (in pairs of shoes), P = price (in dollars), P_X is the average price of shoes in competitor stores, and M is the distance in miles to the nearest competing factory outlet mall. Champaign-Urbana, Illinois is a potential Midwestern market with economic characteristics typical of those eastern markets included in the empirical analysis. In Champaign-Urbana, expected levels are: P = $60, P_X = $80 and M = 200 miles.

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