Question: Problem 1- A Market Experiment. Although consumer interviews and direct market experiments are important sources of information concerning demand functions, they are not used as

Problem 1- A Market Experiment. Although consumer interviews and direct market experiments are important sources of information concerning demand functions, they are not used as often as regression analysis. Suppose you have a firm (if you really have it,use the real data) and you want to estimate a demand function for a product, wich is produced by firm. This information helps you to adjust price and quantity in order to identify your customer and consequantly maximize a firm's profit. In order to start, collect cross sectional data(number of the observation at least 10) with at least 4 explanatory variables, including price of the product itself (show this data in the following table, where quantity offered of a product is (Q) and the rental price is(P) the rest variables you will denote, based on your experiment. Q P Explanatory Variable 2 Explanatory Variable 3 Explanatory Variable 4 1.Use Excel program to regress Q on the 4 explanatory variables. 2.Give an interpretation of each of the estimated regression coefficients. 3.Which of the independent variables (if any) are statistically significant at the 0.05 level? Apply t test and explain. What proportion of the variation in Qis "explained" by the regression equation? 4.What is Adjusted R2and what does it mean? Interpret the results. 5.Write the estimated demand equation for apartments. 6.Conclude!Is your experiment usefull and aplicapable? Why?

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