TABLE 16-8
the President of a Chain of Department Stores $\text { SUMMARY OUTPUT }$

question 192

Short Answer

TABLE 16-8
The president of a chain of department stores believes that her stores' total sales have been showing a linear trend since 1980. She uses Microsoft Excel to obtain the partial output below. The dependent variable is sales (in millions of dollars), while the independent variable is coded years, where 1980 is coded as 0, 1981 is coded as 1, etc.
$\text { SUMMARY OUTPUT }$

$\begin{array}{l}\text { Regression Statistics }\\\begin{array}{lr}\text { Multiple R } & 0.604 \\\text { RSquare } & 0.365 \\\text { Adjusted R Square } & 0.316 \\\text { Standard Error } & 4.800 \\\text { Obervations } & 17\end{array}\end{array}$

$\begin{array}{lc} & \text { Coefficients } \\\text { Intercept } & 31.2 \\\text { Coded Year } & 0.78\end{array}$


-Referring to Table 16-8, the fitted trend value (in millions of dollars) for 1980 is______ .

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Definitions:

Monopolistically Competitive

Refers to a market scenario akin to monopolistic competition, where sellers offer differentiated products that give them some control over pricing.

Average Total Cost

This is calculated by dividing the total cost of production by the total number of units produced, showing the average cost per unit.

Marginal Revenue

The additional income received from selling one more unit of a product or service.

Economic Profit

The surplus remaining after accounting for both explicit and implicit costs from total revenues.