estimate the demand function

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Data has been collected from 15 regions where Widgets were sold last month. See table below:

 

Region

Quantity Sold

Price of Widgets (in dollars)

Median Income (In thousands of dollars)

Pricie of Zuggies (in dollars)

1

20

14

30

15

2

25

13

30

15

3

15

15

35

10

4

30

12

28

16

5

30

14

29

16

6

28

14

29

17

7

35

11

32

18

8

38

12

29

20

9

42

10

28

20

10

16

15

32

9

11

40

9

22

18

12

30

12

34

13

13

30

13

35

14

14

45

9

40

15

15

40

10

38

14

 

 

Use multiple regression to estimate the demand function for widgets.  Is this a good equation overall? (Why) Which variables are significant? (Why) Are widgets normal goods or inferior goods? Are Zuggies substitutes for, complements to, Widgets? If you were contemplating entering a new region (16) where median income is $35 (thousand), Zuggies are selling for $14, and you plan to match Zuggie's price by also charging $14, how many Widgets do you estimate will be sold in region 16?  (Note: you should be able to copy and paste the table above directly into an excel spread sheet.)

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