I am trying to interpret the regression for this data Write out an equation for

Question

I am trying to interpret the regression for this data

Write out an equation for the estimated demand function

Qz =26.67-.09+.14-.08-.54 ? is this correct

Interpret the signs and values of all the estimated coefficients

For every one unit increase in price of pizza, quantity goes down by .09, for every one unit increase in tuition, quantity goes up by .14, etc? is this correct

Using the t-tests determine which coefficients are non-zero.

Non-zero's are?

Compute the price elasticity, cross price elasticity and income elasticity of Pizza?

How confident are you that the sample used in this exercise is a good fit for the entire population

Is this 72% or 67%? R-Square or adjusted r-square?

SUMMARY OUTPUT Regression Statistics Multiple R 0.84649854 R Square 0.716559778 Adjusted R Square 0.671209343 Standard Error 1.640478718 Observations 30 ANOVA df SS MS F Significance F Regression 4 170.087406 42.52185151 15.80050491 1.42527E-06 Residual 25 67.27926063 2.691170425 Total 29 237.3666667 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 26.66685004 3.278084646 8.13488757 1.73E-08 19.91550833 33.41819175 19.91550833 33.41819175 Price of Pizza -0.087750505 0.018062008 -4.858291804 5.37929E-05 -0.124949907 -0.050551103 -0.124949907 -0.050551103 Tuition 0.138204092 0.086646076 1.595041559 0.123268453 -0.040246842 0.316655025 -0.040246842 0.316655025 Price of Soda -0.075895058 0.019225627 -3.947598513 0.00056675 -0.115490979 -0.036299137 -0.115490979 -0.036299137 Location -0.544278595 0.884620096 -0.615268178 0.543938324 -2.366187788 1.277630598 -2.366187788 1.277630598

Explanation / Answer

Qz =26.67-.09PP+0.14T-.08PS-.54L

Where Qz is the quantity,

PP is the price of Pizza

T is the Tuition

PS is the price of soda

L is the Location.

Put the variables with which each coefficient is associated as done.

Interpret the signs and values of all the estimated coefficients

For every one unit increase in price of pizza, quantity goes down by .09, for every one unit increase in tuition, quantity goes up by .14, etc? is this correct: Yes. If the Price of pizza and other variables are not taken in log. If you have taken log of these variables and then run the regression then these coefficient represent elasticity.

Using the t-tests determine which coefficients are non-zero.

Non-zero's are? Non zero here mean you are to check for Null hypothesis(i=0). Against Alternative Hypothesis: i0

For this all those for which t test <3 are non zeros. Here Intercept, Price of Pizza(PP), Price of Soda(PS) are non zero.

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