Please explain answer
Posted: Sun Oct 03, 2021 12:35 pm
Please explain answer
150 125 100 - Sales 75 50 25 - 0 + 1 1.5 2 3.5 4 4.5 2.5 3 Price Transformed Fit Log to Log Log(Sales) = 4.811646 - 1.7523832*Log(Price) Summary of Fit RSquare 0.755335 RSquare Adj 0.750238 Root Mean Square Error 0.385788 Mean of Response 3.136468 Observations (or Sum Wgts) 50 Parameter Estimates Term Intercept Log(Price) Estimate 4.811646 -1.752383 Std Error 0.148033 0.143954 t Ratio 32.50 -12.17 Prob>It! <.0001* <.0001* 20. The t ratio of the slope (elasticity) indicates that A. The elasticity of demand with respect to the price < 0) insignificantly. B. The elasticity <0 significantly and < -1 insignificantly. C. The elasticity < -1 significantly. D. None of the above is correct. 1
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