Interpret Regression Results

I need some help interpreting regression results. How do you interpret the effect of immigrant status on wages (when the model is Log wages regressed on immigrant dummy, and an immigrant dummy interaction) Here are the important numbers Immigrant -.095411Coefficient .0134239 SE Immigrant Interaction .0851195 COEF .0352153 SE

Interpreting Regression Results

I need some help interpreting the regression results. I regressed LogCost on LogSeatMiles, LogPriceLabor, LogPriceMaterials Log PriceFuel Here are the results Variable Coefficient Log SeatMiles .8958442 Log PriceLabor .287488 Log PriceMaterials -.0987056 Log PriceFuel .2973048 I want to double check and make sure that I am doing this correctly: A 1% increase in seat miles increases variable costs by 0.90% all else held constant. A 1% increase in the price of labor increases variable cost by 0.029% all else held constant. A 1% increase in the price of materials decreases variable cost by 0.099%... click for more

Pricing Strategy for Firm with Market Power

You are a pricing analyst for QuantCrunch Corporation, a company that recently spent $10,000 to develop a statistical software package. To date, you only have one client. A recent internal study revealed that this client’s demand for your software is Q^d = 100 – 0.1P and it would cost you $500 per unit to install and maintain software at the client’s site. The CEO of your company recently asked you to construct a report that compares (1) the profit results from charging this client a single per-unit price with (2) the profit that results from charging $900 for the first 10 units and $700 for each additional unit of software purchased. Construct this report, including a recommendation that ... click for more

MANAGERIAL ECONOMICS QUESTIONS

CH 17-4 A firm used to have productive assets that generated an income stream with a present value of 3,000. However, fire occurred and most of those assets were destroyed. The remaining, undamaged assets produce an income stream that has a present value of only 1,000. Therefore, the fire has led to reduction in the value of the firm from 3,000 to 1,000. The firm could undertake a reconstruction of the damaged asset for a capital cost of 1,500, which would restore the income stream to its preloss (PV = 3000). The firm has existing debt of 2,000 which is a senior claim. a. Would the shareholders choose to reinvest by issuing new equity to pay for the loss or are they better off wal... click for more

MANAGERIAL ECONOMICS QUESTIONS

CH 18-4 Some people are good drives and others are bad drives. The former have a 10% chance of crashing their cars and the later have a 30% chance. All have a total wealth of 400 but this will fall to 100 if they crash their cars. In other words, each will lose 300 of wealth if crash. You’re an insurance company who wishes to offer a pair of policies to all drivers. Each policy is designed to break even (zero profit) given the people that choose to buy that policy. The first policy has a premium of 90 and covers all losses (i.e. will pay 300 in the event of a crash). The second policy has a premium of 5 and will pay 50 in the event of a crash. Each person has a utility function of U... click for more