Please use the attached Excel file titled "Sunny" for the following problems; please provide the Excel output on which you base your answers. Sunshine Industries produces Sunny, a brand of pulp free orange juice. In order to study the relationship between price and quantity demanded for the medium bottle of Sunny, the company has collected data concerning demand for it over the last 30 sales periods (each sales period is one month). In the data file, Q_D = the quantity demanded of the medium bottle of Sunny (in thousands of bottles) in the sales period;

P-diff = the difference between the average industry price (in dollars) of competitors' similar orange juice and the price (in dollars) of Sunny offered by Sunshine Industries in the sales period. A. Find the least squares point estimate of ?? and ?1. (6) B. Interpret both of ?? and ?1. Does the interpretation of these make practical sense? (4) C. What is the equation of the least squares line? (4) D. Use the least squares line to compute a point estimate of the mean demand in all sales periods when the price difference is .20 and a point prediction of the demand in an individual sales period when the price difference is .20. Please show your work. (6) E. Find ??1, and the t-statistic for testing the significance of the slope on the output and report their values. Show (within rounding) how t has been calculated by using ?1 and ??1, from the computer output. (4) F. Using the t-statistic and an appropriate critical value, test Ho : B1 = 0 versus Ha: B1 ? 0 by setting ? equal to .05. Is the slope (regression relationship) significant at the .05 level? (4) G. Using the t-statistic and an appropriate critical value, test Ho: B1 = 0 versus Ha: B1 ? 0 by setting ? = to .01. Is the slope (regression relationship) significant at the .01 level? (4) H. Find the p-value for testing Ho : B1 = 0 versus Ha: B1 ? 0 on the output and report its value. Using the p-value, determine whether we can reject Ho by setting ? equal to .10, .05, .01, and .001. How much evidence is there that the slope (regression relationship) is significant? (4) I. Calculate the 95 percent confidence interval for ?1 using numbers on the output. Interpret the interval. (4) J. What is the explained variation for this estimation? (4) K. What is the coefficient of determination equal to? What is the simple correlation coefficient equal to? How do you interpret the former?

- ZOOM + PriceDif Q D -0.05 7.38 0.25 8.51 0.60 9.52 0.00 7.50 0.25 9.3 0.20 8.28 0.15 8.75 0.05 7.87 -0.15 7.10 0.15 3.00 0.20 7.89 0.10 8.15 0.40 9.10 0.45 8.86 0.35 8.90 0.30 8.87 0.50 9.26 0.50 9.00 0.40 8.75 0.05 7.95 -0.05 7.65 -0.10 7.27 0.20 8.00 0.10 8.50 0.50 8.75 0.60 9.21 -0.05 8.27 0.00 7.67 0.05 7.93 0.55 9.26