Bijoux Gourmet Pie Inc., is a national distributer of frozen pies in the United States with 48 stores all over the country. The data above pertains to the 2014 activities for these stores. In this table, Q represents the quantity of the frozen pies sold in each store, P stands for the unit price of each pie in dollars, A is each store's advertising expenditure for the year in dollars, Pc is the average unit price charged by competitors, I represents the average annual disposable income of residents in each market expressed in dollars, POP stands for each market's population, and T is a predetermined trend factor.

STORE Q P A PC I POP T

1 193334 6.39 15827 6.92 33337 4116250 1

2 170041 7.21 20819 4.84 33390 4140338 2

3 247709 5.75 14062 5.28 33599 4218965 3

4 183259 6.75 16973 6.17 33797 4226070 4

5 282118 6.36 18815 6.36 33879 4278912 5

6 203396 5.98 14176 4.88 34186 4359442 6

7 167447 6.64 17030 5.22 35691 4363494 7

8 361677 5.3 14456 5.8 35950 4380084 8

9 401805 6.08 27183 4.99 34983 9184926 1

10 412312 6.13 27572 6.13 35804 9237683 2

11 321972 7.24 34367 5.82 35898 9254182 3

12 445236 6.08 26895 6.05 36113 9272758 4

13 479713 6.4 30539 5.37 36252 9300401 5

14 459379 6 26679 4.86 36449 9322168 6

15 444040 5.96 26607 5.29 37327 9323331 7

16 376046 7.21 32760 4.89 37841 9348725 8

17 255203 6.55 19880 6.97 34870 5294645 1

18 270881 6.11 19151 6.25 35464 5335816 2

19 330271 5.62 15743 6.03 35972 5386134 3

20 313485 6.06 17512 5.08 36843 5409350 4

21 311500 5.83 16984 5.29 37573 5409358 5

22 370780 5.38 15698 6.19 37781 5425001 6

23 152338 7.41 22057 6.94 37854 5429300 7

24 320804 6.19 17460 6.38 39231 5442595 8

25 738760 5.75 42925 5.54 28579 16381600 1

26 707015 6.61 50299 6.73 28593 16544289 2

27 699051 5.03 37364 5.04 28633 16547258 3

28 628838 6.76 50602 4.61 28833 16553958 4

29 631934 7.04 53562 5.85 29242 16587432 5

30 651162 6.7 48911 5.63 29876 16680782 6

31 765124 6.54 49422 6.94 30327 16716936 7

32 741364 5.73 44061 6.37 30411 16717938 8

33 291773 5.35 13896 5.78 29778 2972443 1

34 153018 6.33 27429 4.73 30079 2974275 2

35 574486 5.94 31631 6.7 30598 2989720 3

36 75396 7.0 39176 4.58 30718 3020244 4

37 590190 5.19 33538 5.17 30922 3021618 5

38 288112 7.02 53643 5.15 31199 3025298 6

39 276619 7.02 60284 5.46 31354 3042834 7

40 522446 5.23 53595 6.06 31422 3063011 8

41 395314 5.8 22626 6.56 38892 7611304 1

42 436103 5.32 22697 6.38 39080 7615783 2

43 336338 6.35 25475 4.53 39510 7666220 3

44 451321 5.95 25734 6.31 39552 7710368 4

45 352181 6.01 23777 6.24 39776 7713007 5

46 317322 7.02 27544 4.86 41068 7752393 6

47 422455 5.71 23852 4.86 41471 7754204 7

48 290963 7.36 30487 5.32 41989 7782654 8

Using the data and a multiple regression package:

1)Estimate the coefficients of the demand equation represented by the data.

2)Are the coefficients' signs in accordance with your a priori expectation? Explain.

3)Test the significance of the overall regression equation at 95% level of confidence.

4)Test the significance of each of the independent variable's coefficients at 95% level of confidence.

5)Provide an economic interpretation for each of the coefficients in the computed regression

6)State the value of the coefficient of determination and interpret it.

7)Calculate the 2014 price elasticity, cross price elasticity, income elasticity, and advertisement elasticity for the Bijoux Gourmet Pie Inc.

8)Determine the impact of 10% increase in company's price.

9)Determine the impact of 10% decrease in competitors' prices.

10)Determine the impact of 5% increase in company's advertisement expenditure.

11)Determine the impact of 5% decrease in people's disposable income.

12) is there any other variable that could have been included in the model?

13)are there any redundant variables?

14)What problem would we expect to see if we had missing variables?

15)What problem would we expect to see if we had too many variables?