You have estimated the following model for demand of grape juice using one
hundred observations.
Qg= 150.83–0.75Pg+ 0.37Po+0.65Y.
(0.04) (0.23) (0.02) (0.52)R-square=0.78
Where, Qg=quantitydemandedofgrapejuicebottles.
Pg=price ofgrapejuiceperunit.
Po=Priceoforangejuice.
Y=Income.
Standarderrorsareinparenthesis.
i)Interpret the results.
ii)Which partial slope coefficients are statistically different fromzero? Which test do
you use and why?
iii)Is the income coefficient equal to 1?
iv)Do income and price of orange juice have any significant effect on the demand
for grape juice?
v)Calculate cross-price elasticity when the mean values of price and quantity
demanded are respectively, 25 and 68.
vi)Test the significance of the estimated R-square.
vii)Calculate thevalueofadjustedR-square.