Jordan Simonson
Jordan Simonson AAE 421 5-3a AAE 421 5-3a 4/25/2012 4/25/12
BS and “truth”
Functions Goodness of Fit Table 1: Goodness of Fit
R2
0.55
55% of the variation in the demand for the low
ADJ R2
0.671
calorie microwave food is accounted for by the
Prob (>F)
0.44%
regression equation, 67% when adjusted
Critical T
2.09
There is a 44% chance that the regression
equation is not statistically significant The estimated coefficient is significant at the 0.05 level There are several other regression coefficients that could account for the variability
Slope Analysis Table 2: Slope Analysis
Demand Factors
Average Null Elasticity Hypothesis
Own Price ($)
-1.19
Comp Price
0.68
Income Monthly Adv Exp Number of Microwaves Sold
1.62
One Tailed t-Test: (b Beta)/SE
Probability of Null Hypothesis
Inelastic Weak Substitute
-0.38
35%
0.85
20%
0.80
22%
0.11
Normal Good Mprofit(Adv) > MC(Adv)
-2.22
2%
0.07
Strong Competitor
-7.21
0%