Garden City Plants is planning its full-sized tree purchases for the next several years, and is using the model of tree demand developed from past experience.The manager is responsible for developing the tree demand model. Garden City Plants is the leader in the community, and other suppliers follow its plans.

The model the manager uses is the following, estimated on 34 years of past data:

Q = 450 - 5P - 22S + 3Y + 12H R² = .844

(17) (.13)(.16) (.08)(6.22)

(standard errors are in parentheses)

where Qt = full-sized tree demand in year t, Pt = price of trees in year t, St = price of saplings in year t, Yt = per capita income in the metro area in year t, in thousands of dollars, and Ht = average housing price in the metro area in year t, in thousands of dollars.

a.Evaluate these regression results, including computation of t-statistics, coefficients and R².

b.The manager thinks there that the price of full-sized trees will be 350, the price of saplings will be 50, per capita income in the metro area will be $61,000 and housing prices will be $210,000. How many full-sized trees can Garden City Plants expect to sell in the next year?