Lets first find coefficient of Price
Coefficient of Price= Covariance (Q,P)/Variance (P)
Cov(Q,P)=Sum(Q-Q_)(P-P_)
Q_ is mean of Q and P_ is mean nof P
Cov(Q,P)=-0.814
V(P)=0.134
We ran Trend line to find regression line will be
Q=12.45-6.06P
SUMMARY OUTPUT | |||||||||
Regression Statistics | |||||||||
Multiple R | 0.959087 | ||||||||
R Square | 0.919848 | ||||||||
Adjusted R Square | 0.903818 | ||||||||
Standard Error | 0.765911 | ||||||||
Observations | 7 | ||||||||
ANOVA | |||||||||
df | SS | MS | F | Significance F | |||||
Regression | 1 | 33.66118 | 33.66118 | 57.38156 | 0.000636 | ||||
Residual | 5 | 2.933101 | 0.58662 | ||||||
Total | 6 | 36.59429 | |||||||
Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | ||
Intercept | 12.45277 | 0.984026 | 12.65492 | 5.47E-05 | 9.923251 | 14.98229 | 9.923251 | 14.98229 | |
X Variable 1 | -6.05946 | 0.799923 | -7.57506 | 0.000636 | -8.11573 | -4.0032 | -8.11573 | -4.0032 |
Using the data in the table below, estimate the demand function for cod Quantity, thousand pounds...
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