Consider a linear demand model to explain the quantity demanded for a product:               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 advertisementas well how other factors affect the quantity of units sold.   The results are as follows:                                                      Model Summary R 0.986 R2 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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Consider a linear demand model to explain the quantity demanded for a product:

             

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 advertisementas well how other factors affect the quantity of units sold.

 

The results are as follows:

                                                    

Model Summary

R

0.986

R2

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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