Use the following to answer the question on the basis of the following regression equation. (Standard errors in parentheses, n = 200.) Q = -6,500 - 100PA + 50PB + .3I + .2A; R2 =.12 (2,500) (50) (30) (.1) (.08) where Q is the quantity demanded of good A; P_A = $10, price of good A; P_B = $8, price of good B; I = $12,000, per capita income; and A = $20,000, monthly advertising expenditures.

As a researcher, which aspect of the results would be of greatest concern?

		the negative value of the constant (i.e., -6,500)
		the relatively low impact of the competitor's price
		the fact that not all of the variables are statistically significant
		the poor fit of the regression line

Answer rating: 100% (QA)

Use the relationship of coefficient of the paramete... View the full answer