The following equation describes the median housing price in a community in terms of amount of pollution (nox for nitrous oxide) and the average number of rooms in houses in the community (rooms):

log(price) 5 b0 1 b1log(nox) 1 b2rooms 1 u.

(i) What are the probable signs of b1 and b2? What is the interpretation of b1? Explain.
(ii) Why might nox [or more precisely, log(nox)] and rooms be negatively correlated? If this is the case, does the simple regression of log(price) on log(nox) produce an up- ward or a downward biased estimator of b1?
(iii) Using the data in HPRICE2.RAW, the following equations were estimated:

log(price) 5 11.71 2 1.043 log(nox), n 5 506, R2 5 .264.
log(price) 5 9.23 2 .718 log(nox) 1 .306 rooms, n 5 506, R2 5 .514.
Is the relationship between the simple and multiple regression estimates of the elasticity of price with respect to nox what you would have predicted, given your an- swer in part? (ii) Does this mean that 2.718 is definitely closer to the true elasticity than 21.043?

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

The new york company produces high quality chairs. variable manufacturing overhead is applied at a standard rate of $12 per machine hour. each chair requires a standard quantity of six machine hours. production for the month totaled 4,000 units. calculate: the standard cost per unit for variable overhead. select one: a. $130,000 b. $192,000 c. $90,000 d. $100,000

An attorney came to work on a saturday. when he signed in, he was advised by the morning security guard employed by the building management that he must be out of the building by 5 p. m., when it closes. however, he stayed past 5 p. m. to complete a brief that had to be filed on monday morning. at 5: 15 p. m., the afternoon security guard set the locks on all the doors of the building and left. because she was in a hurry, she did not check the sign-in sheet to make sure that everyone had signed out, contrary to mandatory procedures. when the attorney tried to exit 15 minutes later, he discovered that the doors were all locked and could not be opened from the inside. he used his cell phone to call for , and a supervisor from the building arrived and let him out shortly thereafter. if the attorney sues the building management for false imprisonment, is he likely to win?