1. Demand Estimation (20 points) As the General Manager of the NiceStay hotel resorts, you seek to understand the demand for your major product: all inclusive resort vacation. You have three years of monthly data on the following variables: QX the number of NiceStay vacation packages sold; PX the price of a NiceStay vacation package; Py the price of a competitor's vacation package; and Time the time counter variable (ranges from 1 to 36). You estimated the following regression equation: anX = 50 + 51 111 PX + glnPy + 4Time + "u, The regression results are as follows: Table 1. Variables Coefcients St.Error tstat pvalue Lower 95% Upper 95% Intercept 13.97 4.60 3.04 0.00 4.69 23.25 In PX 4.00 0.50 8.00 0.00 5.82 3.38 In Py 2.46 1.18 2.09 0.04 0.08 4.84 Time 0.00065 0.00423 0.15408 0.88 0.00788 0.00919 (a) (5 points) Is the coefficient g statistically signicant at the 5%? level? If the price Py rises by 10%, how will the sales of good X change? How are the goods X and Y related? (b) (3 points) How will the firm's total revenue change if PX rises