An econometrics expert from your firm used a linear demand specification to estimate the demand for its product and sent you a hard
copy of the results.
20
points
Skipped
eBook
References
SUMMARY OUTPUT
Regression
Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations
Analysis of
Variance
Regression
Residual
Total
0.38
0.14
0.13
20.77
150
Degrees of Freedom Sum of Squares
2
10,398.87
63,408.62
147
149
73,807.49
Coefficients
58.87
-1.64
1.11
Standard Error
15.33
0.85
0.24
Mean Square
5199.43
431.35
t Stat
3.84
-1.93
4.64
F
12.05
P-value
0.00
0.06
0.00
Significance
F
0.00
Lower 95
28.59
-3.31
0.63
Upper 958
89.15
0.04
1.56
Intercept
Price of X
Income ('000)
a. Based on these estimates, write an equation that summarizes the demand for the firm's product.
Instructions: Enter your responses rounded to two decimal places. Do not round intermediate calculations. Round only your final
calculation.
Qxd=
Px +[ M
b. Which regression coefficients are statistically significant at the 5 percent level? (Click to select)
c. When price is $10, what is the income elasticity for this product for an income level of 35? Round to the nearest hundredth.
Fig: 1