Assignment:
A firm does a regression analysis between demand and price. The regression model is as follows, Demand=7465-151* Price.
Q1. Explain the meaning of the two coefficients: 7465 and -151.
Q2. Suppose in the historical data, the range of the Price data is [$15, $35], If the current price = $20, how can you use the regression model to predict the future demand? What if the current price is $12?
Provide complete and step by step solution for the question and show calculations and use formulas.