SIÑO, FERL DIANE S.

BSA18
MANAGERIAL ECONOMICS- DEMAND ESTIMATION

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.79976458589323
R Square 0.63962339284896
Adjusted R Square 0.59804147663923
Standard Error 0.05151064192509
Observations 30

ANOVA
df SS MS F Significance F
Regression 3 0.12244329798 0.040814 15.38225 5.901185E-06
Residual 26 0.06898700202 0.002653
Total 29 0.1914303

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 1.79105226520301 0.261611474734 6.84623 2.879E-07 1.2533021774 2.32880235 1.2533021774 2.328802353
Price -0.00351598945846 0.000775996221 -4.530936 0.000116 -0.005111073 -0.0019209 -0.0051110725 -0.00192091
Income 5.03150212361E-05 2.27799219E-05 2.208744 0.03621 3.490221E-06 9.714E-05 3.4902211E-06 9.71398E-05
Price Hunts 0.2134578716752 0.144537358606 1.476835 0.151731 -0.083642924 0.51055867 -0.0836429239 0.510558667
RESIDUAL OUTPUT

ObservationPredicted Qty of DM Spag Sauce

Residuals Price Line Fit Plot
1 1.86344504261217 0.046554957388

Qty of DM Spag Sauce

2.5
2 1.83479172480142 0.012208275199
2
3 1.86716654587775 0.003833454122 1.5 Qty of DM Spag Sauce
4 1.92114364171107 0.008856358289 1 Predicted Qty of DM
0.5 Spag Sauce
5 1.92563129430482 0.074368705695
0
6 1.9229096213548 -0.02390962135 100 110 120 130 140 150 160 170 180
7 1.88721743180713 -0.01021743181 Price
8 1.90159319326225 -0.07859319326
9 1.90009776900033 -0.044097769
10 1.97972159352794 0.070278406472
11 1.88423511702564 0.027764882974 Income Line Fit Plot
12 1.91538773488122 -0.02238773488

Qty of DM Spag Sauce

2.5
13 1.88520114668722 -0.06320114669 2
14 1.87702106228348 -0.02802106228 1.5 Qty of DM Spag Sauce
1 Predicted Qty of DM
15 1.78186374488298 -0.09186374488 Spag Sauce
0.5
16 1.86408528906738 -0.05808528907
0
17 1.88464690788607 -0.00464690789 2,500 3,000 3,500 4,000 4,500 5,000
18 1.87240636802632 -0.00240636803 Income
19 1.85048984406235 -0.01048984406
20 1.83991082852311 -0.01791082852
21 1.70318538589277 0.112814614107
22 1.78430575337597 -0.00430575338 Price Hunts Line Fit Plot
23 1.75904423655644 -0.03904423656
Qty of DM Spag Sauce

2.5
24 1.84389559230118 0.004104407699 2
1.5 Qty of DM Spag Sauce
25 2.03566870951807 0.064331290482
1 Predicted Qty of DM
26 1.834255457572 0.050744542428 Spag Sauce
0.5
27 1.79995052675223 0.048049473248 0
28 1.8296342258482 0.028365774152 1.5 1.6 1.7 1.8 1.9 2
29 1.91716465271817 -0.06816465272 Price Hunts
 1
Spag Sauce
0.5

Qty of D
0
1.5 1.6 1.7 1.8 1.9 2
Price Hunts
30 1.83492955787954 0.01507044212

Qd = 1.79 - 0.004P + 5.03M + 0.21Pr

INTERPRETATION:

>If the price of DM spaghetti sauce will increase by 1 peso, then the quantity demanded will decrease by 0.004
>If the income will increase by 1 peso per hour, then the quantity demanded for DM spaghetti sauce will increase by 5.03.
Therefore, DM spaghetti sauce is a normal good.
>If the price of related goods - Hunts will increase by 1 peso, then the quantity demanded will increase by 0.21.
Therefore, Hunts is a substitute good.

P-VALUE
The P value of price of 0.0001 is very highly significant because it is lower than the 0.05 level of significance.
The P value of income of 0.036 is statistically significant because it is lower than the 0.05 level of significance.
The P value of price of related goods of 0.152 is not statistically significant because it is greater than the 0.05 level of significance.

R²
63.96% of variation in y (DM spaghetti sauce) can be explained by the variation in x (price, income, and price of related goods).
36.04 of variation cannot be described by the regression line.
Qty of DM Spag Sauce Price Income Price Hunts
1.91 117.05 3,000 1.56
1.847 125.98 2,800 1.62
1.871 123.06 2,900 1.7
1.93 114.95 4,000 1.56
2 113.24 3,800 1.6
1.899 125.87 3,780 1.8
1.877 130.41 3,600 1.75
1.823 128.65 3,890 1.72
1.856 126.79 3,900 1.68
2.05 112.73 4,500 1.68
1.912 133.73 3,900 1.72
1.893 118.79 3,560 1.7
1.822 130.81 3,800 1.7
1.849 137.46 3,890 1.75
1.69 150.01 3,300 1.65
1.806 124.37 3,100 1.66
1.88 136.54 3,850 1.78
1.87 134.41 3,670 1.73
1.84 131.81 3,180 1.7
1.822 137.36 3,400 1.69
1.816 169.2 2,950 1.68
1.78 141.77 2,900 1.62
1.72 151.6 3,000 1.64
1.848 131.14 2,790 1.75
2.1 104.45 4,100 1.9
1.885 145.69 3,700 1.73
1.848 140.46 2,780 1.7
1.858 136.38 3,000 1.72
1.849 113.74 3,200 1.71
1.85 134.05 2,900 1.73