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Based on the regression results for Jessie's Bakery (see below), what happens if Advertising increases by 1 unit? Intercept Price of Cakes (P ) Advertising
Based on the regression results for Jessie's Bakery (see below), what happens if Advertising increases by 1 unit? Intercept Price of Cakes (P ) Advertising (A) Coefficient 41.96 -1.66 6.44 Standard Error 15.53 0.52 1.71 t-stat 2.70 -3.20 3.75 p-value 0.027 0.013 0.006 Cakes The demand curve shifts to the right by 6.44 units. The quantity demanded increases to 7.44 units. The coefficient on A is statistically insignificant so we cannot draw any meaningful conclusion. The demand curve shifts to the left by 3.75 units. Move down the demand curve by 6.44 units
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