Demand Estimation A focus group example: Suppose that Honda has asked you to conduct a focus group to predict how the number of Honda Accord vehicles demanded would change if the price changes. You arrange a focus group of 50 potential car buyers to illustrate how Honda could answer such question. You asked the members of the group if they would be willing to buy an Accord at various prices. As a result, for each of eight prices ranging from $5,000 to $40,000, you have the following information on how many Accords will be demanded at each price by this group. 3. Enter the data in an Excel spread sheet and graph the data using a SCATTER plot and insert a Trend line function. b. Using Excel's Regression analysis, estimate the simple regression (demand for Honda Accord) and properly report the estimated demand equation (you can round the estimated coefcients to FIVE decimal points). Place the regression output in a separate sheet in the same excel le and label the sheet as Reg_0utput. c. What is the R2 (report this as a percentage), and based on the reported R2 do you think this regression can reasonably be used for analysis? d. At the 5% level of signicance, how signicant is the intercept and the price variable (show your work, i.e., state which is signicant and which is not and WHY)? e. How many cars do you expect Honda to sell if the price is $21,500 (show your work and round your answer since Cars are sold in whole units)? f. All else constant, what is the impact on the quantity demanded if the price of an Accord increases by $4,250 (show your work and round your answer)? g. Based on the estimated Demand, compute the point price elasticity of demand at the price of $21,500 (show your work)? g. Do you recommend an increase, a decrease, or a no change in price, with this information (i.e., from the $21,500 per car)? How do you justify your recommendation