this was all that was provided. A manager hires a firm to calculate her firm\'s
ID: 3041438 • Letter: T
Question
this was all that was provided.
A manager hires a firm to calculate her firm's demand equation. The quantity demanded (designated as C1) is used as the dependent variable. The product's price (designated as C2) is used as an independent variable along with consumer's disposable income (designated as C3). Using the regression output table below: a. Complete the table blanks (yellow cells). b. What is the estimated regression coefficient of the product's price? c. Can that estimated relation between own price and quantity demanded be deemed reliable? (why or why not?) d. What is the coefficient of determination (R)? e. What is the probability, if the true value of the regression coefficient of disposable income is zero, that the t statistic is the magnitude that we observe (in absolute value terms) Suppose the price is $25 per unit and disposable income is $33,000. What is the elasticity of demand? What do you recommend the firm's managers do with regard to a price increase or decrease (assume no cost considerations). Justify your answer f. REGRESSION OUTPUT AND ANOVA TABLE R2 1.361 25 2 ANOVA MS Sign F Regression Residual Total 114.09 0.00 21 38.92 1.85 46183 Coefficient Constant 40.8330 Std Err 95%-low 95%-high 0.0000 38.5269 43,1391 0.0000 -1.1662 -0.8838 0.2437 -00049 0.0182 t-Stat p-value 36.7203 8 C2 -102500 0.06807 0.005558 2 2 11995Explanation / Answer
REGRESSION OUTPUT AND ANOVA TABLE
ANOVA
R^2= 1-SSE/SST= 1 -38.92/461.83= 1-0.08427= 0.91573 indicates that the model explains 91.57% of the variability of the response data around its mean.
PLEASE NOTE : I HAVE SOLVED QUESTIONS FROM (a to d) . Please repost e and f with all above solution. thank you.
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