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Boris Yeltsin Products In has hired you to analyze demand in 30 regional markets for Product Y a new vodka beverage A statistical analysis of demand in these markets shows

Boris Yeltsin Products, Inc., has hired you to analyze demand in 30 regional markets for Product Y, a new vodka beverage. A statistical analysis of demand in these markets shows (standard errors in parentheses): QY = 500 - 8P + 5PX + 0.05A + 0.025I (350) (2.5) (2) (0.03) (0.011) R2 = 93% Standard Error of the Estimate = 20 Here, QY is market demand for Product Y, P is the price of Y in dollars, A is dollars of advertising expenditures, PX is the average price in dollars of another (unidentified) product, and I is dollars of household income. In a typical market, the price of Y is $500, PX is $600, advertising expenditures are $10,000, and average per capita income is $40,000. A. Does each independent X variable have a significant effect on the dependent Y variable? B. What percentage of demand variation is explained by this model?

Apr 04 2020 View more View Less

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