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Business, 04.05.2021 22:00 fgcherubin
The following is an estimated demand function:
Q = 875 + 6XA + 15Y β 5P (125) (2) (β1.2)
Where Q is quantity sold, XA is advertising expenditure (in thousands of dollars), Y is income (in thousands of dollars), and P is the good's price. The standard errors for each estimate are in parentheses. The equation has been estimated from 10 years of quarterly data. The R2 was 0.92; the F-statistic was 57; the Standard Error of the Estimate (SEE) is 25. Suppose the values of the explanatory variables next period are: Advertising = $100,000; Income = $10,000; and Price = $100.
Required:
Using the above fitted regression, what is the predicted value of sales?
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The following is an estimated demand function:
Q = 875 + 6XA + 15Y β 5P (125) (2) (β1.2)
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