General Steel produces steel products for use in the construction industry. The firm has enjoyed increasing sales in the past several years, and management is interested in forecasting future sales. The present production and distribution facilities are near capacity, and GS has decided to expand capacity to prepare for future growth. You have been retained as a consultant to help GS choose the optimal plant size for future needs. The marketing department of GS has produced the following regression analysis of sales (from the past 12 years): Q+ = 375 - 10P+ + 250Yt, + . 40H+ + 7.5Pt, R= = .82 (160) (1.7) (80) (.18) (3.85) where Q = total sales (in thousands of dollars) in year t; Pt = an index of GS product prices; Yt, = GDP (in trillions of dollars); H, = housing starts (in thousands); and Put = an index of prices charged by United Steel, a close competitor. Standard errors for the coefficients are shown in parentheses. The standard error of the regression is 190. a. Evaluate and interpret the regression results above. Comment on R3, adjusted R?, the F-statistic (compute this), and the standard error of the regression. b. Suppose that Y = $13.2 trillion, H = 900 thousand, and P" = 120. Derive the demand curve for GS. C. Will a recession significantly affect sales of GS's product? d. Is it likely that there is multicollinearity in this regression. Explain. e. Is United Steel a close competitor of General Steel? Explain