Question: Estimated Demand Function The following is an estimated demand function: Q + + 15Y 875 (125) 6XA (2) 5P (-1.2) Where Q is quantity sold,

Estimated Demand Function The following is an estimated demand function: Q + + 15Y 875 (125) 6XA (2) 5P (-1.2) Where Q is quantity sold, XA is advertising expenditure (in thousands of dollars), Y is income (in thousands of dollars), and P is the good's price. The standard errors for each estimate are in parentheses. The equation has been estimated from 10 years of quarterly data. The R2 was 0.92; the F-statistic was 57; the Standard Error of the Estimate (SEE) is 25. Suppose the values of the explanatory variables next period are: Advertising = $100,000; Income = $10,000; and Price = $100. Using the above fitted regression, what is the predicted value of sales? A) 1125 B) 1625 OC) 2125 D) 1870 E) Unable to determine from the information given

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