1. You have been presented with the following data and asked to fit statistical demand functions: S1
You are required to do the following: a. Develop a simple regression model with paint sales (Y) as
the dependent variable and selling price (P) as the independent variable. b. Show the estimated
regression equation. c. Give an economic interpretation of the estimated intercept (a) and slope
(b) coefficient. d. Calculate the coefficient of determination. (8) e. Suppose one is interested in
developing a multiple regression model with paint sales (Y) as the dependent variable and
promotional expenditures (A) and selling price (P) as the independent variables. i. Show the
estimated regression equation. ii. Give an economic interpretation of the estimated slope
coefficients. iii. Determine the coefficient of determination.