Consider a linear demand model to explain the quantity demanded for a product: Q = a+ B, Price+ B, Income+ B,Advert+ s where Q = quantity sold, Price = price of the product, Income = purchaser's income, Advert = advertising. The following data was collected in year 2018. The company spends millions of money in advertisements. The company wants to know how advertisement as well how other factors affect the quantity of units sold. The results are as follows: Model Summary R 0.986 R? 0.973 Standard error of estimate 6.9872 Variables Coefficient Std error Sig Constant 205.862 19.354 0.000 Price -12.242 1.407 0.000 Income 1.414 0.422 0.015 Advert -3.344 1.798 0.112 Interpret and write a report based on the results obtained above.

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Can you interpret the Model summary table in detail.

Consider a linear demand model to explain the quantity demanded for a product:
Q= a+ B, Price+ B, Income+ B,Advert+ ɛ
where Q = quantity sold, Price = price of the product, Income = purchaser's income, Advert =
advertising. The following data was collected in year 2018. The company spends millions of money in
advertisements. The company wants to know how advertisement as well how other factors affect the
quantity of units sold.
The results are as follows:
Model Summary
0.986
R?
0.973
Standard eror of estimate
6.9872
Variables
Coefficient
Std error
Sig
Constant
205.862
19.354
0.000
Price
-12.242
1.407
0.000
Income
1.414
0.422
0.015
Advert
-3.344
1.798
0.112
Interpret and write a report based on the results obtained above.
Transcribed Image Text:Consider a linear demand model to explain the quantity demanded for a product: Q= a+ B, Price+ B, Income+ B,Advert+ ɛ where Q = quantity sold, Price = price of the product, Income = purchaser's income, Advert = advertising. The following data was collected in year 2018. The company spends millions of money in advertisements. The company wants to know how advertisement as well how other factors affect the quantity of units sold. The results are as follows: Model Summary 0.986 R? 0.973 Standard eror of estimate 6.9872 Variables Coefficient Std error Sig Constant 205.862 19.354 0.000 Price -12.242 1.407 0.000 Income 1.414 0.422 0.015 Advert -3.344 1.798 0.112 Interpret and write a report based on the results obtained above.
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