The Pilot Pen Company has decided to use 15 test markets to examine the sensitivity of demand for its new product to various prices, as shown in the following table. Advertising effort was identical in each market. Each market had approximately the same level of business activity and population.

Please see attachment for tables.

First Table:

Regression Parameters Estimations

Slope (? ?)

Intercept (? ?)

What is the standard error of the estimate (se)?

A. 1.483

B. 105.552

C. 1.732

What is the estimate of the standard deviation of the estimated slope (sb)?

A. 1.904

B. 0.027

C. 0.031

Can you reject the hypothesis (at the 0.05 level of significance) that there is no relationship (i.e.,?=0

?=0) between the price and quantity variables? (Hint:t 0.025,13 =2.16)

A. Yes

B. No

Second Table:

The coefficient of determination (r2) is__________?

What is the price elasticity of demand at a price of 50 cents?

A. 0.03

B. -0.50

C. -0.46

D. -0.02

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