Home » Standard errors for the constant and coefficient are given in parentheses after the equation. Q = 8,400 – 10 P + 5 A + 4 Px + 0.05 I (1,732) (2.29)…

# Standard errors for the constant and coefficient are given in parentheses after the equation. Q = 8,400 – 10 P + 5 A + 4 Px + 0.05 I (1,732) (2.29)…

Standard errors for the constant and coefficient are given in parentheses after the equation.

Q = 8,400 – 10 P + 5 A + 4 Px + 0.05 I              (1,732) (2.29) (1.36) (1.75) 0.15)

R2 = 0.65N = 120F = 35.25Standard error of estimate = 34.3

Q = Quantity demandedP = Price = 1,000A = Advertising expenditures, in thousands = 40PX = price of competitor’s good = 800I = average monthly income = 4,000

Calculate cross-price elasticity of demand with the competitor’s good.  Carefully follow all instructions – be sure to round intermediate answers to four decimal places and final answers to three.  You will interpret your answer in the next question.

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