QD = 15,000 - 10 P + 1500 A + 4 Px + 2 I, (5,234) (2.29) (525) (1.75) (1.5)
R2 = 0.65
N = 120
F = 35.25
Standard error of Y estimate = 565 Q = Quantity demanded
P = Price = 7,000
A = Advertising expense, in thousands = 54 PX = price of competitor's good = 8,000
I = average monthly income = 4,000
10) Calculate the elasticity for each variable and briefly comment on what information this gives you in each case.
11) How is the R2 value calculated, and what information does this give you?