Q1 using the formula for beta1 and beta0 show what will

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Q1. Using the formula for β^1 and β^0, show what will happen to the estimator of the slope and intercept in the SLR model if y is multiplied by the constant k, and at the same time x is multiplied by the constant m.

Q2. At the local gas station, the price elasticity of demand for gasoline is 0.4 at the current price of $3.50 per gallon and the current quantity demand of 6,000 gallons. The gas station is about to increase the price to $3.85 per gallon. How many gallons of gas will be sold at this higher price?

Reference no: EM13352612

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