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. Complete the following worksheet and then estimate the dernand function for Pilot's new pen using a linear regression model. Price Charged Quantity Sold Test Market (cents) (Thousands of Pens) z,2 50 20 1,000 2,500 400 50 21 1,050 2,500 441 W N 55 19 1,045 3,025 361 55 19.5 1,072.5 3,025 380.25 60 19.5 1,170 3,600 380.25 60 19 1,140 3,600 361 65 15.5 1,007.5 4,225 240.25 65 15 975 4,225 225 70 15 1,050 4,900 225 70 15.5 1,085 4,900 240.25 13 1,040 6,400 169 12 14 1,120 6,400 196 13 90 11.5 1,035 8,100 132.25 14 90 11 990 8,100 121 15 17 680 1,600 289 Total 980 245.5 15,460 67,100 4,161.25 Regression Parameters Estimations Slope (B Intercept (a) What is the standard error of the estimate (8,)? O 1.567 O 1.618 O 104.776 What is the estimate of the standard deviation of the estimated slope (a;)? 0 0.028 O 1.890 O 0.029 Can you reject the hypothesis (at the 0.05 level of significance) that there is no relationship (i.e., #= 0) between the price and quantity variables? (Hint: tonzs,13 = 2.16) O Yes O NoComplete the following worksheet and then use it to calculate the coefficient of determination. i yi (yi - y)- (yi - y)2 1 50 20 19.232 8.210 13.201 50 21 19.232 8.210 21.468 2 55 19 18.287 3.688 6.934 4 55 19.5 18.287 3.688 9.818 5 60 19.5 17.342 0.951 9.818 6 60 19 17.342 0.951 6.934 7 65 15.5 16.397 0.001 0.751 8 65 15 16.397 0.001 1.868 9 70 15 15.452 0.837 1.868 10 70 15.5 15.452 0.837 0.751 11 80 13 13.562 7.866 11.334 12 80 14 13.562 7.866 5.601 13 90 11.5 11.672 22.040 23.684 14 90 11 11.672 22.040 28.801 15 40 17 21.122 22.613 0.401 Total The coefficient of determination (r2) is What is the price elasticity of demand at a price of 50 cents? O -0.50 O -0.02 O -0.46 O 0.03