Question Completion Status: QUESTION 1 2.5 points Saved A manufacturer of a leading brand of wooden furniture gathered average monthly sales figures from 26 showrooms in Manama and estimated the following demand for its product: Q = -5,200 - 42P + 20 Px + 5.2Y + 0.2A + 0.25C (2.002) (17 5) (6.2) (2.5) (0.09) (0.21) R2 =0.55, n = 26 and D-W= 2.3 The variables and their assumed values are Q = Quantity sold per month P = Price of the product = BD500, Px = Price of leading competitor's = BD600. Y = Per capita Income = BD5,500 A = Advertising expenditures = 10,000. C = number of consumers = 5,000 (Numbers in brackets are the standard errors of coefficients) Click Sale and Submit to save and submit. Click Save All Answers to save all answers. Save and SubmitFX - Five unieaumy compemol's - DUDUVI Y = Per capita income = BD5,500 A = Advertising expenditures = 10,000. C = number of consumers = 5,000. (Numbers in brackets are the standard errors of coefficients) 1. Calculate the elasticities for each variable. On this basis, discuss the relative impact that each variable has on the demand. (0.5point) 2. What implications do these elasticities have for the firm's pricing policies? Do you think that this firm should cut it's price to increase its sales? Explain. (0.5 point) 3. Which of the independent variables, if any, appears to be statistically significant in explaining sales of the Potato Chips? Evaluate at the 0.05 level of significance, using a two-tail test. (State all your hypotheses and explain your results). (0.5 point) 4. Calculate the F-value of this regression model and evaluate the overall explanatory power of the regression model. (State all your hypotheses and explain your results, use 0 05 level of significance) (0.5 point) 5. Carefully define multicollinearity, and explain how to know that it exists in a regression equation and how it affects regression analysis. What can a researcher do if he/she expects that there is multicollinearity in a regression? (0.5 point) Click Save and Submit to save and submit, Click Save All Answers to save all answers. Same All Ansavers Save and Subrrule