March 18th, 2019 
adminImagine that you work for the maker of a leading brand of low-calorie frozen microwavable food that estimates the following demand equation for its product using data from 26 supermarkets around the country for the month of April.
For a refresher on independent and dependent variables please go to Sophias Website and review the Independent and Dependent Variables tutorial located at http://www.sophia.org/tutorials/independent-and-dependent-variables–3.
Option 1Note: The following is a regression equation. Standard errors are in parentheses for the demand for widgets. QD = – 5200 – 42P + 20PX+ 5.2I + 0.20A + 0.25M (2.002) (17.5) (6.2) (2.5) (0.09) (0.21) R2 = 0.55 n = 26 F = 4.88
Your supervisor has asked you to compute the elasticities for each independent variable. Assume the following values for the independent variables:
Q = Quantity demanded of 3-pack units P (in cents) = Price of the product = 500 cents per 3-pack unit PX(in cents) = Price of leading competitors product = 600 cents per 3-pack unit I (in dollars) = Per capita income of the standard metropolitan statistical area (SMSA) in which the supermarkets are located = $5500 A (in dollars) = Monthly advertising expenditures = $10000 M = Number of microwave ovens sold in the SMSA in which the supermarkets are located = 5000
Write a four (4) page paper in which you:
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