Advanced Consumer Electronics manufactures high-resolution digital cameras, and its marketing department has estimated the following regression equation for the cameras:

Q_ACE = 270 - 0.8P_ACE - 3P_M + 0.4P_C + 0.006I + 0.03A

t-statistic(1.86)(2.13)(1.65)(2.10)(3.25)(1.25)

R² = 0.925n = 2000F = 125.05

Where

Q_ACE = the quantity of Advanced Consumer Electronics cameras demanded per month,

P_ACE = the price of an Advanced Consumer Electronics camera,

P_M = the price of a memory card,

P_C = the price of a competing camera,

I = annual average household income, and

A = monthly advertising expenditures.

a.Evaluate the above regression results?

b.Assume P_ACE = Rs 100, P_M = Rs.20, P_c = Rs. 150, I = Rs 25 (Rs in thousands) and A = 35 (Rs in thousands), calculate the elasticities for each variable?

c.What are the implications of the above-estimated elasticities for management decisions?