A quant jock from your firm used a linear demand specification to estimate deman

Question

A quant jock from your firm used a linear demand specification to estimate demand for its product and sent you a hard copy of the results. Unfortunately, some entries are missing because the toner was low in printer. Use the information presented at the top of the next page to find the missing values. Then answer the the accompanying questions
1. Summary Output

2. Regression statistics
Muliple R .62
R-Square '1'
Adjusted R-Square '2'
Standard Error 190.90
Observation 100

3. Analysis of Variance
Df Sum of Square Mean Square F Signif regression 2.00 '3' 111508.88 3 0.50 0.00
Residual 97.00 3535019.49 36443.50
Total '4' 5758037.26

Co efficient Standard er T-Stat P-Value <95% >95%
Intercept 187.15 '5' .35 .73 -880.56 1254.86
Price of X -4.32 .069 '6' .00 -5.69 -2.96
Income '7' .02 4.47 .00 .05 .14


a. Based on these estimates, write an equation that summarizes the demand for the firm.

Explanation / Answer

From this output the equation is Y=187.15-4.32(beta1)+0.02(beta2)+e

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