1) Answer the following questions on the basis of the following regression equation. (Standard errors in parentheses, n = 200.) Q = -6,500 - 100P_A+ 50P_B+ .3I + .2A; R²=.12, (2,500) (50) (30) (.1) (.08) where Q is the quantity demanded of good A; P_A= $10, price of good A; P_B= $8, price of good B; I = $12,000, per capita income; and A = $20,000, monthly advertising expenditures. As a researcher, which aspect of the results would be of greatest concern?

a) the fact that not all of the variables are statistically significant

b) the poor fit of the regression line

c) the relatively low impact of the competitor's price

d) the negative value of the constant (i.e., -6,500)

2) Answer the following questions on the basis of the following regression equation. (Standard errors in parentheses, n = 200.) Q = -6,500 - 100P_A+ 50P_B+ .3I + .2A; R²=.12, (2,500) (50) (30) (.1) (.08) where Q is the quantity demanded of good A; P_A= $10, price of good A; P_B= $8, price of good B; I = $12,000, per capita income; and A = $20,000, monthly advertising expenditures. Which of the following cannot be determined on the basis of the above regression results?

a) whether or not good A is "normal"

b) the degree of competition between A and B

c) the degree of price elasticity of good B

d) All of the above can be determined.