Econ 625: Managerial Economics Homework #3. 1. Use the data in Homework #3 data.xlsx to estimate a demand model.

| November 18, 2015

Econ 625: Managerial Economics                                                                 Homework #3.

  1. Use the data in Homework #3 data.xlsx to estimate a demand model.
  2. Report your results using the format covered in class.
  3. State whether the estimated parameters are statistically significant or not and justify your answer.
  4. State and interpret the R-squared.
  5. What other variables would you suggest adding to the model?
  6. Using your estimated model predict the quantity demanded if the price were to be 110 units with an income of 21 units.

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