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Just the Fax, Inc. (JTF) has hired you as a consultant to analyze the demand for its line of telecom munications devices in 35 different market areas. The available data set includes observations on the number of thousands of units sold by JTF per month ( Q X ), the price per unit charged by JTF ( P X ), the average unit price of competing brands ( P Z ), monthly advertising expenditures by JTF ( A ), and average gross sales (in thousands of dollars) of businesses in the market area ( I ). The results of a regression analysis (with standard errors in parenthesis) are given below. Q X = 300 - 6 P X + 2 P Z + 0.04 A + 0.01 I (200) (1.8) (0.8) (0.03) (0.004) R 2 = 0.91 The values in parenthesis are standard errors (SE) . Answer the questions following using the table below:
i. Calculate the t statistic (ratio) for the intercept and the four variables
ii. Based on the calculated T statistic, indicate whether the coefficients in the demand equation are significant
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