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Question 1:ABC Corporation has used regression analysis to perform price elasticity analysis. In doing so management regressed the quantity demanded (y variable) against price (x variable) with the following results:Multiple R .86798 Adjusted R squared .72458, Standard error 542.33Intercept 56400.50Price coefficient -4598.20What percentage of the variation in quantity demanded is explained by price?A) 86.798%B) 72.45%C) 56.4%D) 54.23%Question 2:ABC Corporation has used regression analysis to perform price elasticity analysis. In doing so management regressed the quantity demanded (y variable) against price (x variable) with the following results:Multiple R .86798Adjusted R squared .72458, Standard error 542.33Intercept 56400.50Price coefficient -4598.20Calculate the predicted quantity demanded if price is set at $ 7.00. A) 31,234B) 88,588C) 24,213D) 18,454
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