Explore BrainMass
Share

Explore BrainMass

    Multiple regression analysis for San Francisco demand

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Interpret the coefficient of determination (R2) for the San Francisco demand equation.
    What are expected unit sales and sales revenue in a typical market?
    Qi = b0 + b1Pi + b2Pxi + b3Adi + b4Ii + uit

    To illustrate use of the standard error of the estimate statistic, derive the 95 percent confidence interval for expected unit sales and total sales revenue in a typical market.

    See attached file for full problem description.

    © BrainMass Inc. brainmass.com October 9, 2019, 7:15 pm ad1c9bdddf
    https://brainmass.com/statistics/regression-analysis/multiple-regression-analysis-for-san-francisco-demand-112346

    Attachments

    Solution Preview

    Please see attached file.

    A. Describe the economic meaning and statistical significance of each individual independent variable included in the San Francisco demand equation.

    Variable Economic Meaning Statistical Significance
    Price (P)
    Competitor Price (Px)
    Advertising (Ad)
    Income (I)

    The regression coefficients give the effect of unit change in the independent variable on the dependent variable (Demand)

    Price (P) :
    Economic Meaning :
    For a unit increase in price the demand decreases by 19875.95363 units

    Statistical Significance : Since the significance value (p value ) is less than 0.05 ,the price change have significant impact on demand

    Competitor Price (Px)
    Economic Meaning :
    For a unit increase in Competitor Price (Px) ...

    Solution Summary

    Multiple regression analysis for San Francisco demand equation. The solution contains regression, slope, intercept, correlation, r-square, coefficient of determination, regression coefficients and 95 percent confidence interval for expected unit sales and total sales revenue in a typical market.

    $2.19