2, One of the leading washer and dryer manufacturers has estimated the following demand equation based on the data from its 47 branch offices and dealerships across the country: Q:12,000 20P1120A115PC 100AC1801 ZOPD (6400):(9) (80) (7) (64) (52) (9) R2 :0.72 F:20.15 The variables and their assumed values Q Q : Quantity P : Price of basic model: 500 A :Advertising expenditures : 50 P, :Average price of the competitor's product : 600 A : competitor's advertising expenditures : 30 I : per capita income : 75 Pn 2 price ofthe dryer : 600 a. Compute the elasticities for each variable. On this basis, discuss the relative impact that each variable has on the demand. What implications do these results have for the firm's marketing and pricing policies? b. How concerned should the company be about the impact of a recession on its sales? Explain. Do you think the rm should cut its price to increase market share? Explain. Conduct a t-test for the statistical signicance of each variable. Discuss the results of the t-tests inlightof the policy implications mentioned. e. What proportion of the variation in sales is explained by the independent variables in the equation? How condent are you about this answer? Explain pp