Managerial Economics

Airline Data

Observations	Seats (QD)	Price	Competitor's Price	Income
1	64.8	250.0	250.0	104.0
2	33.6	265.0	250.0	101.5
3	37.8	265.0	240.0	103.0
4	83.3	240.0	240.0	105.0
5	111.7	230.0	240.0	100.0
6	137.5	225.0	260.0	96.5
7	109.5	225.0	250.0	93.3
8	96.8	220.0	240.0	95.0
9	59.5	230.0	240.0	97.0
10	83.2	235.0	250.0	99.0
11	90.5	245.0	250.0	102.5
12	105.5	240.0	240.0	105.0
13	75.7	250.0	220.0	108.5
14	91.6	240.0	230.0	108.5
15	112.7	240.0	250.0	108.0
16	102.2	235.0	240.0	109.0

Regression Results

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.881
R Square	0.776
Adjusted R Square	0.721
Standard Error	14.766
Observations	16.000
ANOVA
	df	SS	MS	F	Significance F
Regression	3.000	9089.599	3029.866	13.896	0.000
Residual	12.000	2616.380	218.032
Total	15.000	11705.979
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	28.844	174.665	0.165	0.872	-351.719	409.407	-351.719	409.407
Price	-2.124	0.340	-6.238	0.000	-2.865	-1.382	-2.865	-1.382
Competitor's Price	1.035	0.467	2.218	0.047	0.018	2.051	0.018	2.051
Income	3.089	0.999	3.093	0.009	0.913	5.266	0.913	5.266
RESIDUAL OUTPUT
Observation	Predicted Seats (QD)	Residuals
1	77.903	-13.103
2	38.327	-4.727
3	32.615	5.185
4	91.882	-8.582
5	97.670	14.030
6	118.166	19.334
7	97.934	11.566
8	103.458	-6.658
9	88.402	-28.902
10	94.308	-11.108
11	83.886	6.614
12	91.882	13.618
13	60.768	14.932
14	92.349	-0.749
15	111.495	1.205
16	114.856	-12.656

Price Residual Plot

250 265 265 240 230 225 225 220 230 235 245 240 250 240 240 235 -13.102757460360138 -4.7268236643353916 5.184736526283686 -8.5815266856321699 14.030291136891023 19.334347560952551 11.565928200582164 -6.6578910405857386 -28.901610704166131 -11.108445859027697 6.6137853979205374 13.618473314367833 14.931923111496999 -0.74869860097501828 1.2047658853345098 -12.656497118746714

Price

Residuals

Competitor's Price Residual Plot

250 250 240 240 240 260 250 240 240 250 250 240 220 230 250 240 -13.102757460360138 -4.7268236643353916 5.184736526283686 -8.581526685632169 9 14.030291136891023 19.334347560952551 11.565928200582164 -6.6578910405857386 -28.901610704166131 -11.108445859027697 6.6137853979205374 13.618473314367833 14.931923111496999 -0.74869860097501828 1.2047658853345098 -12.656497118746714

Competitor's Price

Residuals

Income Residual Plot

104 101.5 103 105 100 96.5 93.3 95 97 99 102.5 105 108.5 108.5 108 109 -13.102757460360138 -4.7268236643353916 5.184736526283686 -8.5815266856321699 14.030291136891023 19.334347560952551 11.565928200582164 -6.6578910405857386 -28.901610704166131 -11.108445859027697 6.6137853979205374 13.618473314367833 14.931923111496999 -0.74869860097501828 1.2047658853345098 -12.656497118746714

Income

Residuals

Sheet2

Sheet3