Question: A multiple regression analysis based on a data set that consists of 30 observations yielded the following estimated demand equation:
Q = 120 - 1.1P + 0.04 I + 0.90 A
Where P is price, I is income, and A is advertising. If price is equal to $1,000, income is equal to $20,000, and advertising expenditures are equal to $500, the what is the predicted quantity demanded?