You are the manager of large automobile dealership who wants to learn

YOU are the manager of large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months .Following are the average negotiated prices for each month and quantities sold of a basic model (adjusted for various option ) over this period of time .
 
A) Graph this information on a scatter plot.Estimate the demand equation . What do the regression results indicate about the desirability of discounting price ?Explain
 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 
 

 
 

Month
Price
Quantity

Jan
12500
15

Feb
12200
17

Mar
11900
16

Apr
12000
18

May
11800
20

Jun
12500
18

Jul
11700
22

Aug
12100
15

Sep
11400
22

Oct
11400
25

Nov
11200
24

Dec
11000
30

Jan
10800
25

Feb
10000
28

      
 B) What other factors beside price might be included in this equations ? Do you foresee any difficulties in obtaining thees additional data or in cooperating them in the regression analysis?

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