Data from 20 cities were used to estimate the demand for face-lifts. The resulting regression equation was Qd = 50.000 - 0.001P + 0.002/ R2 = 0.55 (5.42) (-2.34) (2.00) where Qd is face-lifts per 1,000 population per year, P is the price in rupess,I is income in rupees, and the t-statistics are shown in parentheses.
( a) In determining statistical significance of the coefficients, what number should be used for degrees of freedom ?
( b) which of the coefficients are statistically significant at the 5 Percent level ?
(c) The mean value of P and I are Rs. 5,000 and Rs. 20,000, respectively. compute the point price elasticity of demand.
(d) what is the predicted demand at the mean values of the independent variables?