Question: (25%) A set of data (CopyofRegMidTerm.xls) is posted in Learning Modules (bottom of the list titled “Midterm 2012”). Copy and paste this data into Minitab and answer the following questions based on Minitab output:

a. Using multiple linear regression, find the regression equation for this product.

b. Do you observe any problems with multicolinearity or serial correlation? Are the signs what you would expect them to be? What about statistical significance of the independent variables? The overall equation?

c. Find the relevant elasticities for all the independent variables. What do you conclude?

d. What is the demand curve, ceteris paribus, for this product? (use the average of “other” variables).

e. What relevant policy recommendation(s) can you conclude from the study?