Question
You have conducted market research and run a regression on your product. Quantity Demanded is the Dependent Variable. The two independent variables are Price and
You have conducted market research and run a regression on your product. Quantity Demanded is the Dependent Variable. The two independent variables are "Price" and "Price of a Related Good" ("PRelated"). You have obtained these regression results, similar to what you saw in the videos.
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.923123123
R Square 0.921724844
Adjusted R Square 0.905087267
Standard Error 4.342546124
Observations 100
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 18.101 36.0318 3.5745 0.0117 40.6292 216.962
Price -.62113 0.24733 -2.8958 0.01067 -1.6386 0.2079
PRelated 1.4923 0.20739 2.2201 0.01073 -0.1150 0.8998
Rounding your intercept to a whole number, and the coefficients to one decimal place, which of the following comes closest to quantity of your product that will be demanded if the price you charge is $30.00 and the price of the related good is $24.00?
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