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35 points Save Answer QUESTION 3 We used aluminum in a wide range of commercial goods because of its heat capacity and flexible strength. It is also infinitely recyclable and makes up part of the foundational infrastructure of the world. In modern society, aluminum is used to produce power lines, high-rise buildings, consumer electronics, household appliances, aircraft components, ships trains, and cars. Below is the estimated demand function for world aluminum. The standard errors of the coefficients are in parentheses. n29 QA-3543 - 5.89PA 5.22Pz7.15Y (621) (1.15) (1.22) (1.79) R2 = 0.925 Standard Error of the Estimate - 5.741 CA world consumption of aluminum (in millions of metric tona) PA price of aluminum per 100 kilograma (8) - 2.99 Pz - price of zinc per 100 kilograms (5) - 4,55 Y Index of real per capita income (units) - 1.40 You must show your work and label your answers, as shown below. A. Interpret the R and be specific a. Your interpretation: B. Do increases in the price of zinc increase the demand for aluminum? Test at the 99 percent level of confidence. Your answer should include (a) the null and the alternative hypotheses, (b) the computed value oft rounded to three decimal places, (c) the critical value of t'n-k.0-0.01. (d) your decision to reject or cannot reject Ho, and (e) your conclusion NOTE: SECbi- - OD a. Ho HF b. It n-k] =b/SEC: - C. t'n-k,a 0.01

b. It n-al-b/SECI c. tinka 0.01 d. Your decision to reject or cannot reject Hot e. Your conclusion: C. Construct confidence interval (Charound the demand for world aluminum at the 99% level of confidence alpha-0.01. Q-QAnk. 10.01 XSEE Round quantity demanded to whole numbers. Use the values of the independent variables as given to compute the quantity demanded. a. Your CI: D. Compute and interpret the point price elasticity? As a business analyst, would you recommend to management to decrease price to increase total revenues? Your answer should include (a) the price elasticity rounded to three decimal places. (b) your interpretation of the price elasticity, and (c) your decision to management to decrease price or not to increase total revenue and why based on your price elasticity a ep 6Q6PxP/Q b. Interpretation of ep: c. Your decision and why based on ep! Table cum, probl one-tail twetails 0.50 1.00 En 0.25 0.50 0.20 0.40 0.15 0.30 0.10 0.20 0.05 0.10 re 0.025 0.05 0.01 0.02 0.005 0.01 0.001 0.002 0.00051 0.001 1.963 1.380 1.250 1.190 1.150 1.134 63.60 0.925 5.11 4606 5 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0 000 0.000 0.000 7 1.000 0.816 0.765 0.741 0.727 0.718 0.711 0.700 0.703 0.700 0.007 0.685 OLMAMI 1.378 1.001 0.97 0041 0.920 0.005 0.000 0.680 0.063 0.870 0.876 0.873 OZO 6.314 2.920 2 353 2.132 2015 1.3 100s 1.000 3.078 1.80 1.64 1.533 1.470 1.440 1.415 1.397 1383 1.372 1363 1.356 1940 1.119 12.71 4303 3.182 2.776 2571 2.447 2365 2300 2202 2228 2201 2.179 24162 31. 82 6.065 4 541 3.747 3.365 143 2.000 2000 2.821 2.764 2710 2601 200 318 31 22 27 10.215 7.173 5.693 520 4785 4501 4.297 4.144 4.025 3.930 2002 4.032 TOT 3.400 3355 3.250 3.100 3.106 3.055 2012 630. 31.500 12,924 8.610 6.000 500 5.400 5041 4 TB1 4.687 4.437 4.318 4223 1.100 1.100 1093 1.050 1.003 1.079 10 11 12 1.812 1.700 1.782 1721

c. Your decision and why based on ep: t Table cu pret 0.50 1.00 0.25 0.50 0.20 0.40 0.15 0 30 0.10 0.20 0.05 0.10 0.025 0.05 0.01 0.005 0.01 0.02 0.001 0.000 0.002 0.001 з оrе WO 31. 6. M WOES SES 0.000 0.000 0.000 0.000 0 000 0.000 εεε εε re 1.3 1.3 1.250 1.190 1.100 1.11 . 1.100 6.314 2.000 2303 2.132 2010 160 1.37 1.00 0.978 0.041 0.020 00 . D.NO 0.45 0.670 0.878 0.673 12.79 4303 3.182 2.776 2.671 2505 2.300 2.22 316.31 10.215 7.17 5.00 5200 6. TAS GOEE 31 500 12.2014 8610 so 0 0 20 1.ATO 1440 1413 VERE TO COS 000 0000 CH OM 3.14 2.000 0.000 13 5.84 4604 4032 3. TOY 5.400 38 3250 3.100 3.100 3.055 ta OL 9000 1373 co 20 4.144 TA LOOD 1.00 1.000 1.000 VERE SCOP 1.000 0.816 0.75 0.741 0727 0.718 0.711 0.703 0.700 TOO O 0.005 0.00 0.69 0.691 0.000 0.000 0.6 O.GRY 0.6 0.000 0.685 0.685 4.30 ISA . NE 0.000 0.000 0.000 0.000 0.000 4 47437 4318 al 14 15 0.6TO 2.2 2.764 2710 2.661 2.650 2624 2002 6201 8 1350 O wo TI 1.753 ore PE IEET 2012 3.000 BAZ 3.77 3733 . ! 0.000 IND OS 2.77 7047 2.0 4.140 4073 401 1337 WA 000 17 18 10 0.000 0.000 200 3905 1074 word VOZ + 1007 10 1.064 1.00 1.00 O 0065 0.62 0.001 O. 0.000 0.858 0.85 3.172 1.720 3.646 3610 3570 32 2007 252 22.500 2.520 2.500 COWE VE 0.000 0.000 0.000 0.000 25 3 1.121 2,831 GIVE 600 E 23 24 25 20 2578 2500 2.499 000 0 0000 0.067 TE 2061 245 2019 2.SOT 2.792 2.787 2.77 2.763 3.79 3.76 3.745 NO 3.505 3485 3.467 3456 3.435 2.421 SWE 1.00 1.70 2.201 1.72 2160 1345 1.703 2.145 2.13 1.746 2.120 1.333 1.740 2110 1330 2.100 1.325 2.000 1.72 2.000 1.323 2.00 1321 1.717 2074 1319 1714 1310 1.711 2064 1316 1.700 2000 1316 1 TOG 2056 1314 1.TOS 2052 1313 1.701 2043 1311 1.000 2.046 1310 1.697 2.042 1.684 2021 1.200 1.670 2000 1.292 1.064 1.900 1.200 1.600 1.004 1282 1 646 1.52 1.645 100 60% 95% Confidence Level LE w 2771 372 3.000 3.600 204K PAVE COVE 2756 3.300 40 3646 1050 10 OS 1.057 1.050 1,058 1055 1060 1045 1043 1042 1037 1.03 70% 0 000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0 000 0.000 0% 0.850 054 0.158 0855 0.654 0.654 0.851 0.14 0.840 0.645 0.842 0842 60% 0.64 0.614 0.60 0.600 0.623 0.601 0.679 0 670 0.677 0.675 0.074 60% COC. 09 2470 2473 2467 2.482 2AST 2A23 2300 2374 2304 2330 2026 98% 3.38 3307 3232 3.195 3.174 3,551 3.460 2.750 2.70 2.000 2.630 2.6.26 2.50 2.570 50 100 1000 DIVE WOO 3300 3300 I 3.000 LOCE