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Regression Statistics Multiple R 0.97747728 R Square 0.955461832 Adjusted R Squa

ID: 2923331 • Letter: R

Question

Regression Statistics

Multiple R 0.97747728

R Square 0.955461832

Adjusted R Square 0.946085376

Standard Error 42.4112273

Observations 24

ANOVA

df SS MS F Significance F

Regression 4 733155.8015 183288.9504 101.9000984 1.46651E-12

Residual 19 34175.53183 1798.712201

Total 23 767331.3333

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%

Intercept 1183.802486 506.2980062 2.338153561 0.030467269 124.1085829 2243.49639 124.1085829 2243.49639

P -213.4219011 13.48631686 -15.82506946 2.13823E-12 -241.6490866 -185.1947156 -241.6490866 -185.1947156

M_INCOME 0.091088289 0.012409922 7.339956795 5.87592E-07 0.065114024 0.117062553 0.065114024 0.117062553

PAL 101.3028564 38.74776028 2.614418373 0.017051998 20.20286225 182.4028505 20.20286225 182.4028505

PBMAC 71.84479909 27.09970176 2.651128774 0.015762653 15.12447158 128.5651266 15.12447158 128.5651266

Calculate the following for Checker's Pizza:

1. Own price elasticity, income elasticity, and cross-price elasticity for both Al’s Pizza and Big Macs. Evaluate each at the mean values of the data. Show how you calculated the elasticities, and report your values for each of the elasticities calculated.

1 SUMMARY OUTPUT Regression Statistics 4 Multiple R 5 R Square 6 Adjusted R Square 0.946085 7 Standard Error 8 Observations 0.977477 0.955462 42.41123 24 10 ANOVA MS nificance F 12 Regression 13 Residual 14 Total 4 733155.8 183289 101.9001 1.47E-12 19 34175.53 1798.712 23 767331.3 Coefficientstandard Err t Stat P-value Lower 95% 1183.802506.298 2.338154 0.030467 124.1086 2243.496 124.1086 2243.496 213.422 13.4863215.8251 2.14E-12 -241.649185.195 -241.649 -185.195 0.091088 0.01241 7.339957 5.88E-07 0.065114 0.117063 0.065114 0.117063 101.3029 38.74776 2.614418 0.017052 20.20286 182.4029 20.20286 182.4029 71.8448 27.0997 2.651129 0.015763 15.12447 128.5651 15.12447 128.5651 r 95% over 95.09 r 95.0% 17 Intercept 18 P 19 M INCOME 20 PAL 21 PBMAC 23 Calculate the following for Checker's Pizza: 1. Own price elasticity, income elasticity, and cross price elasticity for both Al's Pizza and Big Macs. Evaluate each at the mean values of the data. Show how you calculated the elasticities, and report your values for each of the elasticities calculated

Explanation / Answer

Demand Funcaton: Q = a + bP + cM + dPal + ePBMac Q=1183.802486-213.4219011(9.5)+0.091088289(26614)+101.30

Q=2688.324575

Ê=^b(P/Q) -0.718168

ÊM=(M/Q 0.901733

Ê=^d(PAL/ 0.3813

ÊXBMAC= 0.030622