Data has been collected from 15 regions where Widgets were sold last month. See table below:
|
Region
|
Quantity Sold
|
Price of Widgets (in dollars)
|
Median Income (In thousands of dollars)
|
Pricie of Zuggies (in dollars)
|
|
1
|
20
|
14
|
30
|
15
|
|
2
|
25
|
13
|
30
|
15
|
|
3
|
15
|
15
|
35
|
10
|
|
4
|
30
|
12
|
28
|
16
|
|
5
|
30
|
14
|
29
|
16
|
|
6
|
28
|
14
|
29
|
17
|
|
7
|
35
|
11
|
32
|
18
|
|
8
|
38
|
12
|
29
|
20
|
|
9
|
42
|
10
|
28
|
20
|
|
10
|
16
|
15
|
32
|
9
|
|
11
|
40
|
9
|
22
|
18
|
|
12
|
30
|
12
|
34
|
13
|
|
13
|
30
|
13
|
35
|
14
|
|
14
|
45
|
9
|
40
|
15
|
|
15
|
40
|
10
|
38
|
14
|
Use multiple regression to estimate the demand function for widgets. Is this a good equation overall? (Why) Which variables are significant? (Why) Are widgets normal goods or inferior goods? Are Zuggies substitutes for, complements to, Widgets? If you were contemplating entering a new region (16) where median income is $35 (thousand), Zuggies are selling for $14, and you plan to match Zuggie's price by also charging $14, how many Widgets do you estimate will be sold in region 16? (Note: you should be able to copy and paste the table above directly into an excel spread sheet.)