4. The estimation of the model with quarterly car sales in the U.S. from 1975 to 1990gives:Source |dfMSNumber of obs =64F( 2,Prob > F61) =12.21Model.327202242.163601120.0000Residual |.81728658761.013398141R-squaredAdj R-squared = 0.2625Root MSE0.2859Total | 1.1444888363.018166489.11575lqne | cCoef.t P>|t|std. Err.[95% Conf. Interval]1pricelincome-.46046113.371866.89398-.8280926.1838504-4.500.000-1.1957242.399991. 48602614.940.0001.428121_cons5.92543.484366212.230.0004.95688Based on the parameter estimates, what is the predicted effect of a 10% increase inprice on the number of cars sold? What would be the effect of that price increase onthe value of car sales?

Regression Analysis: Regression analysis is used to measures the association or linear relationship…

4. The estimation of the model with quarterly car sales in the U.S. from 1975 to 1990 gives: Source | df MS Number of obs 64 Model Residual | .817286587 F( 2, 61) = Prob > F 12.21 = 0.0000 = 0.2859 .32720224 2 .16360112 R-squared Adj R-squared = 0.2625 Root MSE 61 .013398141 Total | 1.14448883 63 .018166489 .11575 lqnc | Coef. std. Err. P>|t| t [95% Conf. Interval] 1price lincome _cons | -.8280926 .1838504 -4.50 0.000 -1.195724 -.4604611 2.399991 .4860261 4.94 0.000 1.428121 3.37186 5.92543 .4843662 12.23 0.000 4.95688 6.89398 Based on the parameter estimates, what is the predicted effect of a 10% increase in price on the number of cars sold? What would be the effect of that price increase on the value of car sales?

4. The estimation of the model with quarterly car sales in the U.S. from 1975 to 1990 gives: Source | df MS Number of obs 64 Model Residual | .817286587 F( 2, 61) = Prob > F 12.21 = 0.0000 = 0.2859 .32720224 2 .16360112 R-squared Adj R-squared = 0.2625 Root MSE 61 .013398141 Total | 1.14448883 63 .018166489 .11575 lqnc | Coef. std. Err. P>|t| t [95% Conf. Interval] 1price lincome _cons | -.8280926 .1838504 -4.50 0.000 -1.195724 -.4604611 2.399991 .4860261 4.94 0.000 1.428121 3.37186 5.92543 .4843662 12.23 0.000 4.95688 6.89398 Based on the parameter estimates, what is the predicted effect of a 10% increase in price on the number of cars sold? What would be the effect of that price increase on the value of car sales?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4A: Problems In Applying The Linear Regression Model

Section: Chapter Questions

Problem 2E

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