Estimated Demand Function

The following is an estimated demand function:

Q

=

875

+

6XA

+

15Y

5P

(125)

(2)

(1.2)

Where Q is quantity sold, X_A 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.

According to the common 95 percent level of significance (estimated) for the regression above,

Group of answer choices

only price is significant.

all variables are probably significant.

no variable is significant.

both income and price are significant.