Based on the Following Regression Equation (Standard Errors in Parentheses

question 49

Multiple Choice

based on the following regression equation (Standard errors in parentheses, n = 150) :
Q_D = 1000 - 50P_A + 10P_B + .05I, (20) (7) (.04)
where Q_D = quantity demanded of good A, P_A = price of good A, P_B = price of a competing good B, and I = per capita income.
-For which of the following variables should a "two tail" t-test be applied?

• A)P_A
• B)I
• C)P_B
• D)Should be applied for all.

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Definitions:

Diminishing Marginal Utility

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