Sherwin-Williams Company is attempting to develop a demand model for its line of exterior house paints....

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Sherwin-Williams Company is attempting to develop a demand model for its line of exterior house paints. The company's chief economist feels that the most important variables affecting paint sales (y) (measured in thousand gallons) are Promotional expenditure (a) (measured in thousand dollars) Selling price (p) (measured in dollars per gallon) Disposable income per household (m) (measured in thousand dollars). Using the variables specified by the Company's chief economist, the Research Department obtained from a data set of thirty observations the following estimation result of a log-linear regression model given by log y = a + Bloga + y log p + 8 log m. log y | Coefficient Std. Err. P>lt| [95% Conf. Interval] -0.16 loga| log p| log m| constant | 6.951867 -.0232291 .1420415 0.875 -.3707923 .324334 -1.037375 .3655166 -2.84 0.030 -1.931762 -.1429884 .3882373 .3753380 1.03 0.341 -.5301816 1.306656 1.442853 4.82 0.003 3.421333 10.4824 First conduct an appropriate t-test for each independent variable except the constant as to whether it is statistically significant at the 95% confidence level, and then make an economic interpretation of each of the statistically significant coefficients. Use the "Students" Sherwin-Williams Company is attempting to develop a demand model for its line of exterior house paints. The company's chief economist feels that the most important variables affecting paint sales (y) (measured in thousand gallons) are Promotional expenditure (a) (measured in thousand dollars) Selling price (p) (measured in dollars per gallon) Disposable income per household (m) (measured in thousand dollars). Using the variables specified by the Company's chief economist, the Research Department obtained from a data set of thirty observations the following estimation result of a log-linear regression model given by log y = a + Bloga + y log p + 8 log m. log y | Coefficient Std. Err. P>lt| [95% Conf. Interval] -0.16 loga| log p| log m| constant | 6.951867 -.0232291 .1420415 0.875 -.3707923 .324334 -1.037375 .3655166 -2.84 0.030 -1.931762 -.1429884 .3882373 .3753380 1.03 0.341 -.5301816 1.306656 1.442853 4.82 0.003 3.421333 10.4824 First conduct an appropriate t-test for each independent variable except the constant as to whether it is statistically significant at the 95% confidence level, and then make an economic interpretation of each of the statistically significant coefficients. Use the "Students"

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ony dharge in level of price log y will be if price Chargees by 1 ... View the full answer