Use Excel to estimate the linear OLS demand regression for the iTunes focus grou

Question

Use Excel to estimate the linear OLS demand regression for the iTunes focus group data in the Managerial Solution. What is the R? What are the coefficient estimates, the standard errors and the t-statistics for each coefficient? Using a 95% confidence criterion, would you reject the hypothesis that the price coefficient is zero? (You can compare most of your answers to those in the Managerial Solution) Price, $ per song 1.49 1.29 1.19 1.09 0.99 0.89 0.79 0.69 0.49 Quantity, songs per year 441 493 502 536 615 643 740 757 810 The regression's R value is (Enter your response rounded to two decimal places.) Using the Excel trendline option to estimate a linear demand function, the linear demand function is = H Ip. (Enter your response rounded to two decimal places.) The standard error on the intercept isand the standard error on the price coefficient isEnter your response rounded to two decimal places.)

Explanation / Answer

a)

R^2 = 0.957919

Q = 1023.91453 - 142.8205128 * p

sd(intercept) = 33.77696

sd(price coefficient) = 32.702876

t- stat (intercept) = 30.31398557

t-stat(price coefficient) = 12.62337

coefficient of intercept is statistically significant

coefficient of price variable is statistically significant

Please rate

SUMMARY OUTPUT Regression Statistics Multiple R 0.978733833 R Square 0.957919916 Adjusted R Square 0.951908475 Standard Error 28.88239807 Observations 9 ANOVA df SS MS F Significance F Regression 1 132928.2051 132928.2051 159.3494769 4.52309E-06 Residual 7 5839.350427 834.1929182 Total 8 138767.5556 Coefficients Standard Error t Stat P-value Lower 95% Intercept 1023.91453 33.77696831 30.31398557 1.09653E-08 944.0446915 p -412.8205128 32.70287602 -12.62337027 4.52309E-06 -490.1505266

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