Question 13 (Pg 117) You are the manager of a firm that sells a leading brand of alkaline batteries. A file named Q12.xls with the data on the demand for your product is available online at www.mhhe.com/bayede. Specifically, the file contains data on the natural logarithm of your quantity sold, price, and the average income of consumers in various regions around the world. Use this information to perform a log-linear regression, and then determine the likely impact of a 3 percent decline in global income on the overall demand for your product. InQ= (1.29+/-.01)+(-0.07+/-.01) InP+ (-0.03+/-.01)InM To determine the likely impact of a 3 percent decline in global income on the overall demand of your product, demand will decline by approximately 0.1%, but since income elasticity isn't significantly different from zero, it likely won't fall at all. The regression output is as follows: Regression Statistics Multiple R = 0.97 R Square = 0.94 Adjusted R Square = 0.94 Standard Error = 0.00 Observations = 49 Analysis of Variance Degrees of Freedom Sum of Squares Mean Square F Significance F Regression 2 0.00702 0.004 370.38 0.00 Residual 46 0.00044 0.000 Total 48 0.00745