I.Students are expected to view the video, read and understand Units 2 & 4 before attempting this exercise.

Consider the data provided in your one.xls provided in your diskette. This worksheet contains data regarding the market for Beer.Information on Quantity demanded (Q), Price of the product (P), total Advertisement expenditure (AD) and the per-capita income (I) in the market are provided for 12 months.Answer the following questions by performing the necessary operations in EXCEL:

1.Perform 3 simple linear regressions indicated below:

a.Qd=a - b P.Is P a significant variable ?Interpret the R-squared value.

Calculated t:

Table value of t:

Reject Null ?

Interpret R-squared here:

b.Qd = a + b AD.Is AD a significant variable ?Interpret the R-squared value.

Calculated t:

Table value of t:

Reject Null ?

Interpret R-squared here:

c.Qd = a + b I.Is I a significant variable ?Interpret the R-squared value.

Calculated t:

Table value of t:

Reject Null ?

Interpret R-squared here: