Question 1:
ABC 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?
A) 86.798%
B) 72.45%
C) 56.4%
D) 54.23%
Question 2:
ABC 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
Calculate the predicted quantity demanded if price is set at $ 7.00.
A) 31,234
B) 88,588
C) 24,213
D) 18,454