where Q = number of hamburgers sold per month, in thousands
P = price of Ziggy’s hamburgers, in dollars
PC = price of hamburgers for Ziggy’s major competitor, in dollars
Y = income per capita in the surrounding community, thousands of dollars
A = advertising expenditures during the previous month, thousands of dollars
Currently, Ziggy charges $1.00 for its hamburgers, while its closest competitor charges $1.20. Income per capita is $20,000, while advertising was $5,000 in the preceding month.
a. Evaluate the overall explanatory power of the regression model. Use a 0.05 level of significanc