A quant 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 at the top of the next page (page 112) to find the missing values labeled ‘1’–‘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 the data.