1. An analyst from your firm used a linear demand specification to estimate the demand for its productand sent you a hard copy of the results:SUMMARY OUTPUTRegression StatisticsMultiple RR SquareAdjusted R SquareStandard ErrorObservationsANOVARegressionResidualTotalInterceptPrice of XIncome0.380.140.1320.77150df2147149SS58.87-1.641.1110398.8763408.6273807.49Coefficients Standard Error15.330.850.24MS5199.43431.35t Stat3.84-1.934.63F12.05P-value0.000.060.00Significance F0Lower 95%28.59-3.310.63Upper 95%b. Which regression coefficients are statistically significant at the 5 percent level?a. Based on these estimates, write an equation that summarizes the demand for the firm's product.89.150.041.56C. When price is $10, what is the income elasticity for this product for an income level of 35?

OLS estimation (ordinary least squares) is a statistical approach for estimating the parameters of a…

a. Based on these estimates, write an equation that summarizes the demand for the firm's product. b. Which regression coefficients are statistically significant at the 5 percent level? C. When price is $10. what is the income elasticity for this product for an income level of 35?

a. Based on these estimates, write an equation that summarizes the demand for the firm's product. b. Which regression coefficients are statistically significant at the 5 percent level? C. When price is $10. what is the income elasticity for this product for an income level of 35?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. An analyst from your firm used a linear demand specification to estimate the demand for its product
and sent you a hard copy of the results:
SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations
ANOVA
Regression
Residual
Total
Intercept
Price of X
Income
0.38
0.14
0.13
20.77
150
df
2
147
149
SS
58.87
-1.64
1.11
10398.87
63408.62
73807.49
Coefficients Standard Error
15.33
0.85
0.24
MS
5199.43
431.35
t Stat
3.84
-1.93
4.63
F
12.05
P-value
0.00
0.06
0.00
Significance F
0
Lower 95%
28.59
-3.31
0.63
Upper 95%
b. Which regression coefficients are statistically significant at the 5 percent level?
a. Based on these estimates, write an equation that summarizes the demand for the firm's product.
89.15
0.04
1.56
C. When price is $10, what is the income elasticity for this product for an income level of 35?

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