Result of regression and estimating demand function

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Reference no: EM1313232

1. From the regression output, estimate the demand function when income is $40,000 and price is $2 per gallon.

Qd = a - b (price) + c (income), where a is the intercept, b is X variable 1, and c is X variable 2 from the regression output.

2. Explain the result in terms of R-square, T-test, F-statistic, and signs of each X variables.

The result , we obtained for the above mentioned terms would be as follows,

Generally, R -square is best measures of the goodness of the data fit i.e. how well the regression results fit the date.

3. Estimate the Price Elasticity Coefficient by using Price (from $2 to $3) and income at $40,000.

4. To increase the sales of organic milk, do you think a price discount is appropriate? Why? If not, why not?

Reference no: EM1313232

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