solution

The Kramer Corporation’s marketing manager calculates a regression, where

the quantity demanded of the firm’s product (designated as “C1”) is the dependent

variable and the price of the product (designated as “C2”) and consumers’

disposable income (designated as “C3”) are independent variables. The

Minitab printout for this regression follows

What is the intercept of the regression?

b. What is the estimated regression coefficient of the product’s price?

c. What is the estimated regression coefficient of disposable income?

d. What is the multiple coefficient of determination?

e. What is the standard error of estimate?

f. What is the probability that the observed value of the F statistic could

arise by chance, given that neither of the independent variables has any

effect on the dependent variable? g. What is the probability, if the true value of the regression coefficient of price is zero, that the t statistic is as large (in absolute terms) as we

observe? h. What is the probability, if the true value of the regression coefficient

of disposable income is zero, that the t statistic is as large (in absolute terms) as we observe? i. Describe briefly what this regression means.