15. preliminary plans are underway for construction of a new stadium for a major league base ball team. city officials question the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. corporations and selected individuals may purchase a box for $300,000. the fixed construction cost for the upper-deck area is estimated to be $4,500,000, with a variable cost of $150,000 for each box constructed. a. what is the breakeven point for the number of luxury boxes in the new stadium? b. preliminary drawings for the stadium show that space is available for the construction of up to 50 luxury boxes. promoters indicate that buyers are available and that all 50 could be sold if constructed. what is your recommendation concerning the construction of luxury boxes? what profit is anticipated?

1. the manager of collins import autos believes the number of cars sold in a day (q) depends on two factors: (1) the number of hours the dealership is open (h) and (2) the number of salespersons working that day (s). after collecting data for two months (53 days), the manager estimates the following log-linear model: q 4 equation 1 a. explain, how to transform the log-linear model into linear form that can be estimated using multiple regression analysis. the computer output for the multiple regression analysis is shown below: q4 table b. how do you interpret coefficients b and c? if the dealership increases the number of salespersons by 20%, what will be the percentage increase in daily sales? c. test the overall model for statistical significance at the 5% significance level. d. what percent of the total variation in daily auto sales is explained by this equation? what could you suggest to increase this percentage? e. test the intercept for statistical significance at the 5% level of significance. if h and s both equal 0, are sales expected to be 0? explain why or why not? f. test the estimated coefficient b for statistical significance. if the dealership decreases its hours of operation by 10%, what is the expected impact on daily sales?