Question: 10 points Anwar Kim K asks you to develop a demand forecast for her perfume line. Using the data provided, you find a regression model,

10 points Anwar Kim K asks you to develop a

10 points Anwar Kim K asks you to develop a demand forecast for her perfume line. Using the data provided, you find a regression model, y = 4 +3.36x1 + 5x2, with the undernoted parameters. Kim asks you the question below - please answer her. Parameters R2-0.88 Sig of F: 0.04 p-value of x1-0.05 p-value of x2=0.04 X1 denotes Consumer Income *2 denotes Advertising y denotes Demand Would a unit increase in Consumer Income (x1) result in an increase of 3.36 units in Demand ), on average? No, because for a unit increase in y, *1 increases by 3.3 8.36 units b Yes, because for a 3.36 units increase in y, x increases by 1 unit - Yes, because for a unit increase in X1. y increases by 3.36 units on average, provided x2 kept constant

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