Consider the following equation.

Q = 8,400 - 10 P + 5 A + 4 Px + 0.05 I, (1,732) (2.29) (1.36) (1.75) 0.15)

R2= 0.65

N = 120

F = 35.25

Standard error of estimate = 34.3

Q = Quantity demanded

P = Price = 1,000

A = Advertising expenditures, in thousands = 40

PX= price of competitor's good = 800

I = average monthly income = 4,000

a) Calculate the elasticity for each variable and briefly comment on what information this gives you in each case.

b) Calculate t-statistics for each variable and explain what this tells you.