7. A quant jock from your firm used a linear demand specification to estimate the demand for its product and sent you a hard copy of the results. Unfortunately, some entries are missing because the toner was low in her printer. Use the information presented below to find the missing values labeled ‘1’ through ‘7’ (round your answers to the nearest hundredth). Then, answer the accompanying questions. (LO6) SUMMARY OUTPUT Regression Statistics Multiple R 0.38 R-Square ‘1’ Adjusted R-Square ‘2’ Standard Error 20.77 Observations 150 Analysis of Variance Degrees of Freedom Sum of Squares Mean Square F Significance F Regression 2 ‘3’ 5199.43 12.05 0.00 Residual 147 63,408.62 431.35 Total ‘4’ 73,807.49 Coefficients Standard Error t-Statistic P-Value Lower 95% Upper 95% Intercept 58.87 ‘5’ 3.84 0.00 28.59 89.15 Price of X -1.64 0.85 ‘6’ 0.06 -3.31 0.04 Income ‘7’ 0.24 4.64 0.00 0.63 1.56 Final PDF to printerbay90611_ch03_064-100.indd 97 10/27/16 08:07 PM 97 a. Based on these estimates, write an equation that summarizes the demand for the firm’s product. b. Which regression coefficients are statistically significant at the 5 percent level? c. Comment on how well the regression line fits the data

7. A quant jock from your firm used a linear demand specification to estimate the demand for its product and sent you a hard copy of the results. Unfortunately, some entries are missing because the toner was low in her printer. Use the information presented below to find the missing values labeled ‘1’ through ‘7’ (round your answers to the nearest hundredth). Then, answer the accompanying questions. (LO6) SUMMARY OUTPUT Regression Statistics Multiple R 0.38 R-Square ‘1’ Adjusted R-Square ‘2’ Standard Error 20.77 Observations 150 Analysis of Variance Degrees of Freedom Sum of Squares Mean Square F Significance F Regression 2 ‘3’ 5199.43 12.05 0.00 Residual 147 63,408.62 431.35 Total ‘4’ 73,807.49 Coefficients Standard Error t-Statistic P-Value Lower 95% Upper 95% Intercept 58.87 ‘5’ 3.84 0.00 28.59 89.15 Price of X -1.64 0.85 ‘6’ 0.06 -3.31 0.04 Income ‘7’ 0.24 4.64 0.00 0.63 1.56 Final PDF to printerbay90611_ch03_064-100.indd 97 10/27/16 08:07 PM 97 a. Based on these estimates, write an equation that summarizes the demand for the firm’s product. b. Which regression coefficients are statistically significant at the 5 percent level? c. Comment on how well the regression line fits the data

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