Yeager 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: 542.33
Intercept: 56400.50
Price coefficient: -4598.20
a. 86.798%
b. 72.458%
c. 56.4%
d. 54.233%
Answer: b.
Multiple R: .86798
Adjusted R squared: .72458
Standard error: 542.33
Intercept: 56400.50
Price coefficient: -4598.20
What percentage of the variation in quantity demanded is explained by price?
a. 86.798%
b. 72.458%
c. 56.4%
d. 54.233%
Answer: b.