The demand function for goodXis Q_X^d= a + bP_X+ cM + e, whereP_xis the price of goodXandMis income. Least squares regression reveals that:

The R-squared is 0.35.

a. Compute thet-statistic for each of the estimated coefficients.

Instruction:Enter your responses rounded to the nearest two decimal places. If entering a negative number, be sure to use a negative sign (-).

ta=

tb=

tc=

b. Determine which (if any) of the estimated coefficients are statistically different from zero.

multiple choice 1

The coefficient estimates for b and c are statistically different from zero.

The coefficient estimate for b is statistically different from zero.

The coefficient estimate for c is statistically different from zero.

The coefficient estimates for a and c are statistically different from zero.

c. What does theR-square in this regression indicate?

multiple choice 2

35 percent of the variability in the dependent variable is explained by price and income.

65 percent of the variability in the dependent variable is explained by price and income.

35 percent of the variability in income is explained by price.

35 percent of the variability in price is explained by income.