Fluidyne Corporation manufacturesandsellswaterfilters.Theeconomic forecasting unit of thecompany has supplied the following demand equation:

QB=2000 -5PB +2.5PC+0.82Y+ 0.6AB

(1200)(1.5)(1.2)(0.5)(0.2)

Where,

QB=quantitysold

PB=priceperunit

PC=averageunitpriceofcompetitor'sproduct

Y=incomeperhousehold

AB=advertising expenditure

R2= 0.86

S.E.E=5

Standard error of coefficients in parentheses (1200) (1.5) (1.2,) (0.5) , ( 0.2)

Given, PB=$50, PC=$45,AB=$12,500 Y=$2,000

a)Does each independent variable have a significant effect on the sales of Fluidyne water filters?

b)Interpret the coefficient of variables that are significant?

c)Interpret the coefficient of determination(R²)

d)Determine the monthly quantity demanded sold (QB) for water filter?

e)Is the quantity demanded for water filter (QB) sensitive to its own price?

f)Is water filter a luxury or necessity?