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1. In this project, you are required estimate the demand for "economy" vehicles using the variables provided. The dependent variable is QE_Y and there are 11 independent variables (X1 to X11) 2. Identify the relationship between the dependent variable (Y) and each of the independent variables (X). For example, the relationship between variable QE_Y and variable PownL_X2 is positive. Economy vehicles and Luxury vehicles are substitute. If the rate of luxury vehicles (and PownL_X2) rises, the quantity demanded for economy vehicles (QE_Y) increases. 3. Using Excel or any other statistical software to run regression analysis and estimate the coefficients of each independent variable X. Your model should look like the following:QE_Y = constant (or intercept) + a1X1+ a2X2+ a3X3+ a4X4+ a5X5+ a6X6+ a7X7+ a8X8+ a9X9+ a10X10+ a11X11+ a12X124. Compute elasticities for PownE_X1, PownL_X2, and pcomp_X3 for week 30. 5. What other factors besides price might be included in this equation? Do you foresee any difficulty in obtaining these additional data or incorporating them in the regression analysis?
6. What proportion of the variation in the dependent variable is explained by the independent variables in the equations?
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