the linear demand function is given below. Qd = β0 +β1Psh +β2M+β3Pcg+β4Ax+ β5C Where, Qd = deluxe room in S hotel Psh = Price of a deluxe room in S hotel (US$/room) = US$. 200.00 M = Visitors per capita income (US$/Day) = US$ 120 Pcg = Price of a deluxe room in C (US$/room) = US$. 150.00 Ax = in S hotel (US$/room) US$. 18.00 C = Customer Satisfaction Index = 8.56 The estimated computer output of the A above model under Least Square Method (LSM) is as follows, Dependent Variable: Q R- Square: 0.86 T table value 1.671 No of observations: 62 F- Ratio: 154.15 Variables Parameter Estimate Standard Error β0 127.8 49.6 β1 -1.3.0 0.42 β2 2.75 1.01 β3 2.55 1.21 β4 1.41 0.48 β5 1.85 0.23 a) Are estimated parameters comparable with economic theory? Explain b) Construct the TR function and determine the TR maximize demand b) What are the significant parameters that could be impact on the demand for a deluxe room in S hotel?

/in /by

the linear demand function is given below. Qd = β0 +β1Psh
+β2M+β3Pcg+β4Ax+ β5C Where, Qd = deluxe room in S hotel Psh =
Price of a deluxe room in S hotel (US$/room) = US$. 200.00 M =
Visitors per capita income (US$/Day) = US$ 120 Pcg = Price of a deluxe
room in C (US$/room) = US$. 150.00 Ax = in S hotel (US$/room) US$.
18.00 C = Customer Satisfaction Index = 8.56 The estimated computer
output of the A above model under Least Square Method (LSM) is as
follows, Dependent Variable: Q R- Square: 0.86 T table value 1.671 No
of observations: 62 F- Ratio: 154.15 Variables Parameter Estimate
Standard Error β0 127.8 49.6 β1 -1.3.0 0.42 β2 2.75 1.01 β3 2.55
1.21 β4 1.41 0.48 β5 1.85 0.23 a) Are estimated parameters
comparable with economic theory? Explain b) Construct the TR function
and determine the TR maximize demand b) What are the significant
parameters that could be impact on the demand for a deluxe room in S
hotel?

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