Question 2 You have been presented with the following data and asked to fit statistical demand functions: Promotion Exp. Selling Price Sales (Y) (A) (P) (1000 Litres) (5'000) (3/ Liter) 160 15.00 150 220 13.50 160 140 16.50 50 190 14.50 190 130 17.00 90 160 16.00 _ 60 200 13.00 _ 140 150 18.00 110 210 12.00 200 190 15.50 100 You are required to do the following: 3. Develop a simple regression model with paint sales (Y) as the dependent variable and selling price (P) as the independent variable. Show the estimated regression equation. Give an economic interpretation of the estimated intercept (a) and slope (b) coefficient. Calculate the coefficient of determination. Suppose one is interested in developing a multiple regression model with paint sales (Y) as the dependent variable and promotional expenditures (A) and selling price (P) as the independent variables. i. Show the estimated regression equation. ii. Give an economic interpretation of the estimated slope coefficients. iii. Determine the coefficient of determination