1) Calculate the elasticity for each variable and briefly comment on what information this gives you in each case. 2) Calculate t-statistics for each variable and explain what this tells you. 3) How is the R2 value calculated, and what information does this give you? 4) How would you evaluate the quality of this equation overall? Do you have any concerns? Explain. 5) When would you use a one-tailed rather than a two-tailed t-test when checking significance levels? 6) Should this firm be concerned if macroeconomic forecasters predict a recession? Explain. R2 = 0.65 N = 120 F = 35.25 Q = 8,400-10 P + 5 A + 4 Px + 0.05 I, (1,732) (2.29) (1.36) (1.75) 0.15) Standard error of estimate = 34.3 Q = Quantity demanded P = Price = 1,000 A = Advertising expenditures, in thousands = 40 PX price of competitor's good = 800 I = average monthly income = 4,000