Question:
Items 1 through 2 are based on the following information:
Yeager Corporation has used regression analysis to perform price elasticity analysis. In doing so management regressed the quantity demanded (y variable) against price (x variable) with the following results:
|
Multiple R
|
.86798
|
|
Adjusted R squared
|
.72458
|
|
Standard error
|
542.33
|
|
Intercept
|
56400.50
|
|
Price coefficient
|
-4598.20
|
What percentage of the variation in quantity demanded is explained by price?
1. 86.798%
2. 72.458%
3. 56.4%
4. 54.233%
Calculate the predicted quantity demanded if price is set at $7.00.
1. 24,213
2. 88,588
3. 31,234
4. 18,454