# Question: Aquant jock from your firm used a linear demand specification

Aquant jock from your firm used a linear demand specification to estimate the demand for its product and sent you a hard copy of the results. Unfortunately, some entries are missing because the toner was low in her printer. Use the information presented below to find the missing values labeled ‘1’ through ‘7’ (round your answer to the nearest hundredth). Then, answer the accompanying questions.

a. Based on these estimates, write an equation that summarizes the demand for the firm’s product.

b. Which regression coefficients are statistically significant at the 5 percent level?

c. Comment on how well the regression line fits thedata.

a. Based on these estimates, write an equation that summarizes the demand for the firm’s product.

b. Which regression coefficients are statistically significant at the 5 percent level?

c. Comment on how well the regression line fits thedata.

## Answer to relevant Questions

Suppose the true inverse demand relation for good X is Qdx = a + bPx + cM + e, and you estimated the parameters to be â = 22, b^ = -1.8, δâ = 2.5, and δb^ = 0.7. Find the approximate 95 percent confidence interval for ...A consumer has $ 300 to spend on goods X and Y. The market prices of these two goods are Px = $ 15 and Py = $ 5. a. What is the market rate of substitution between goods X and Y? b. Illustrate the consumer’s opportunity ...Upscale hotels in the United States recently cut their prices by 25 percent in an effort to bolster dwindling occupancy rates among business travelers. A survey performed by a major research organization indicated that ...A multiproduct firm’s cost function was recently estimated asC (Q1, Q2) = 90 - 0.5Q1 Q2 + 0.4Q21 + 0.3Q2 2a. Are there economies of scope in producing 10 units of product 1 and 10 units of product 2? b. Are there cost ...Suppose the marginal benefit of writing a contract is $ 100, independent of its length. Find the optimal contract length when the marginal cost of writing a contract of length L is: a. MC (L) = 30 + 4L. b. MC (L) = 40+ 5L. ...Post your question