Consider the Following to Answer the Question(s) Below

question 18

Essay

Consider the following to answer the question(s) below:
To determine whether the tip left at the end of a meal is related to the size of the total bill at their restaurant, Chez Michelle, data were gathered for 10 customers. The data and summary statistics are shown below.

-For each of the following scenarios, indicate which is the predictor variable and which is the response variable.
a. A supermarket chain gathers data on the amount they spend on promotional material (specials, coupons, etc.) and sales revenue generated each quarter.
b. Government sponsored research investigated the relationship between the number of hours individuals spend on the Internet and age.
c. A real estate association conducted a study on home prices and economic strength for different regions of Canada.

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Definitions:

Penetration Pricing

A pricing strategy where the price of a new product is intentionally set lower than the competition to gain market share quickly.

Price Skimming

A pricing strategy in which a company charges the highest initial price that customers will pay for a new product, then gradually lowers the price to attract more price-sensitive customers.

Variable Costs

Costs that change in proportion to the level of activity or volume of output in a business, such as raw materials and labor costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent or salaries.