whats is the economic meaning of the coefficient? 2) describe the meaning of R2 and its value, F - value 3) what do you think about the model as a whole, with F , R2 values … is it significant or not … explain your answe
whats is the economic meaning of the coefficient? 2) describe the meaning of R2 and its value, F - value 3) what do you think about the model as a whole, with F , R2 values … is it significant or not … explain your answe
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 1E
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Question
1) whats is the economic meaning of the coefficient?
2) describe the meaning of R2 and its value, F - value
3) what do you think about the model as a whole, with F , R2 values … is it significant or not … explain your answer.
![Q3. You are working as a researcher in an economic Institute, you want to study the
relation between the Unit sales as a Dependent variable and the following independent
variables (selling expenditure, advertising, competitive price) As shown in the
following model
Unit Sales= b0+b1 Exp+ + b2 Adv t+ b3 compt +Ut
After collecting your data, and estimating your linear regression over the data, you got
the following regression equation
Unit Sales+ = -10.5 0.51 Expt +
0.09 Adv ++ 3.05 b3 compt
(4.2)
(2.94)
t-value
(2.45) (-1.5)
F-Value 0.33
R² = 0.24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1c24c39-0475-472c-adf2-d7312cc4334c%2F0365f2e7-955e-425c-8989-beac77c35cc8%2Fisqncof_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q3. You are working as a researcher in an economic Institute, you want to study the
relation between the Unit sales as a Dependent variable and the following independent
variables (selling expenditure, advertising, competitive price) As shown in the
following model
Unit Sales= b0+b1 Exp+ + b2 Adv t+ b3 compt +Ut
After collecting your data, and estimating your linear regression over the data, you got
the following regression equation
Unit Sales+ = -10.5 0.51 Expt +
0.09 Adv ++ 3.05 b3 compt
(4.2)
(2.94)
t-value
(2.45) (-1.5)
F-Value 0.33
R² = 0.24
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