In a Study of Feeding Behavior, Zoologists Recorded the Number

question 11

Essay

In a study of feeding behavior, zoologists recorded the number of grunts of a warthog feeding by a lake in the 15 minute period following the addition of food. The data showing the number of grunts and and the age of the warthog (in days) are listed below:

$\begin{array}{cc}\hline \text { Number of Grunts } & \text { Age (days) } \\\hline 90 & 125 \\68 & 141 \\39 & 155 \\44 & 160 \\63 & 167 \\40 & 174 \\62 & 183 \\17 & 189 \\20 & 195 \\\hline\end{array}$
a. Write the equation of a straight-line model relating number of grunts $( y )$ to age $( x )$ .
b. Give the least squares prediction equation.
c. Give a practical interpretation of the value of $\hat { \beta } _ { 0 }$ , if possible.
d. Give a practical interpretation of the value of $\hat { \beta } _ { 1 }$ , if possible.

Analyze the role of target return-on-investment (ROI) in setting prices.

Recognize the importance of customary pricing in certain markets.

Comprehend how businesses utilize pricing to achieve specific financial objectives.

Understand the concept of price setting in response to market or competitor actions.

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Definitions:

Repair Costs

The expenses incurred in fixing or maintaining equipment, machinery, or buildings to ensure their proper functioning and longevity.

Sinking Funds

A fund established by an entity to set aside money over time for the purpose of paying off debt or a major expense.

Marginal Revenue Curves

These are graphs that show the relationship between the amount of output a firm sells and the revenue it gains from selling an additional unit of output.

Competitive Firm

A company that operates in a market where there is free entry and exit and no single buyer or seller can influence the market price.