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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