1. The annual sales of American made vehicles (in 1000 vehicles) to foreigncountries has been estimated as follow:

E(Yi) =310.5-8.5X1i+4.7X2i+5.66X3R2= 0.73

(1.081)*(-4.73)*(3.932)*(5.23)*n = 40, F = 9.73

Where E(Yi) = annual average number of vehicles sold to foreign countries (in 1000 vehicles), X1= the annual average price of all vehicles sold to foreign countries (in $100), X2= average foreign per capita income (in $1000), and X3is a binary variable that assumes a value of 1 when there is no major political turmoil in foreign countries in a year,and a value of 0 when there is a major turmoil in foreign countries in a year.

* Numbers inside parentheses are t-statistics.

a.Explain the meaning of each estimated coefficient (except the intercept) in the context of this problem and plain English.

b.Use alpha of0.05 to determine which estimated coefficients are significant (different from zero) including the intercept.Make sure all H0s and Has are explained in the context of this model and plain English.Also, find the approximate P-values.What are your conclusions?

c.Check the overall significance of the entire model using = 0.01. Make sure Ho, Ha, and your conclusions are explained in plain English.What is the approximate p-value?

d.Explain the meaning of multiple coefficient of determination in the context of this model.

e.What is the value of adjusted R square?