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Based on the Following Regression Equation (Standard Errors in Parentheses

Question 5

Multiple Choice

based on the following regression equation (Standard errors in parentheses, n = 150) :
QD = 1000 - 50PA + 10PB + .05I, (20) (7) (.04)
where QD = quantity demanded of good A, PA = price of good A, PB = price of a competing good B, and I = per capita income.
-For which of the following variables should a "two tail" t-test be applied?


A) PA
B) I
C) PB
D) Should be applied for all.

Correct Answer:

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