Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The linear regression is Y= -8222.8x + 123,367 R2=0.6503 a. Is the price variable statistically significant at the 5% level? How do you know? b.

image text in transcribed

image text in transcribed
The linear regression is Y= -8222.8x + 123,367 R2=0.6503 a. Is the price variable statistically significant at the 5% level? How do you know? b. How much of the variation in quantity is explained by price? C. If price is $100, what is our predicted quantity? d. If I raise my price by $5, what would be our predicted change in quantity? e. Create a scatter plot with a linear trendline through the data points. (Hint: the videos on D2L, in particular "Doing a Regression in Microsoft Excel, are helpful here). One way to add a trendline is to select a data point, right-click that point, and then choose "Add Trendline") Choose the options where the trendline equation and R-squared are displayed. The Linear regression is Y= -0.0022x + 132.02 R2= 0.6503 f. Which of these explanatory variables are significant at the 5% level? g. Which of these explanatory variables are significant at the 1% level? h. How much of the variation in quantity is explained by the explanatory variables? If price rises by $1, what would be our predicted change in quantity? . If the unemployment rate falls by 1 percentage point, what would be our predicted change in quantity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Michael Parkin

12th edition

133872297, 133872293, 978-1292094632

More Books

Students also viewed these Economics questions

Question

Evaluate Reverse the order of integration. 8x dy dx. (x? + y?+ 1)

Answered: 1 week ago