$\text {The following questions refer to this regression equation, (standard errors in parentheses.)}$

question 59

Essay

$\text {The following questions refer to this regression equation, (standard errors in parentheses.)}$
$$\mathrm { Q } = 8,400 - 10 \mathrm { P } + 5 \mathrm {~A} + 4 \mathrm { Px } + 0.05 \mathrm { I } , ( 1,732 ) ( 2.29 ) ( 1.36 ) ( 1.75 ) 0.15 )$$
$\begin{array} { l } \mathrm { R } ^ { 2 } = 0.65 \\\mathrm {~N} = 120 \\\mathrm {~F} = 35.25\end{array}$
$\text {Standard error of estimate \(= 34.3\)}$
$\text {\(Q =\) Quantity demanded}$
$\text {\(\mathrm { P } =\) Price \(= 1,000\)}$
$\text {\(\mathrm { A } =\) Advertising expenditures, in thousands \(= 40\)}$
$\text {\(\mathrm { PX } =\) price of competitor's good \(= 800\)}$
$\text {\(\mathrm { I } =\) average monthly income \(= 4,000\)}$
-Calculate t-statistics for each variable and explain what this tells you.

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Definitions:

Salespersons

Individuals who are employed to sell products or services to customers, often working on commission.

Average Sales

The sum of all sales amounts divided by the number of sales transactions, indicating the typical sales value.

Variance

A statistical measure of the dispersion or spread in a set of data points, indicating how much the values differ from the mean of the set.

Variance

A measure of variability that denotes the average of the squared differences from the mean, showing how widely the values in a data set are spread.