Help…price Elasticity Estimation Problem?

Thomas Magnum, a financial analyst for Detroit Wheels, Inc., has been
hired to analyze demand in 20 regional markets for Product Y, a major item. A statistical analysis of
demand in these markets shows (standard errors in parentheses):
QY = 26,950 – 420P + 250PX + 0.05A + 0.01I
(11,000) (160) (180) (0.4) (0.05)
R2 = 0.95
Standard Error of the Estimate = 10
Here, QY is market demand for Product Y, P is the price of Y in dollars, A is dollars of advertising expenditures, PX is the average price in dollars of another (unidentified) product, and I is dollars of household income. In a typical market, the price of Y is $100, PX is $75, advertising expenditures are $50,000, and average family income is $80,000.
A. Use the estimated demand function to calculate the expected value of QY in a typical market.
Presented by Suong Jian & Liu Yan, MGMT Panel , Guangdong University of Finance.
B. Calculate the 99% confidence interval within which you would expect to find actual values
of sales.

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