Use the equation:
Qd = 5,000 - 15P + 50A + 3Px - 4I
Qd = Quantity Demanded of X,
P = Price of Good X,
A = Advertising Expenditures on Good X,
Py = Price of a Competitive Good,
I = Average Monthly Income
The Standard Errors of the Regression Coefficients are:
Intercept (2,117)
Coefficient on P (2.7)
Coefficient on A (15)
Coefficient on Py (2)
Coefficient on I (3)
Calculate the t-statistics for each variable and explain what inferences can be drawn from them. If R2 of this equation is 0.25, what inference can be drawn from it?