A Perodua dealer has hired you to analyze automobile demand in 30 regional markets for MyVi Model. A regression analysis was conducted using the following model. Q, = a + b, P, + b, Y +b, P + b, A...

Extracted text: A Perodua dealer has hired you to analyze automobile demand in 30 regional markets for MyVi Model. A regression analysis was conducted using the following model. Q, = a + b, P, + b, Y +b, P + b, A Where, Q, = quantity demanded per year of MyVi automobiles. P,= average price of MyVi automobiles in thousands, (RM40) Y = household income in thousands, (RM24) P= average price of Kia Rio automobiles in thousands, (RM45) A = advertising expenditures per year in thousands, (RM400) The results of the computer analysis based on data collected in 30 regional markets are shown below: Variable Coefficient Std Error t-statistics Intercept 2,000 1000 2.00 Pp -10 2.5 -4.00 Y 0.025 0.02 1.25 PM 1.5 3.33 А 0.0825 0.025 3.3 Coefficient of determination, R = 0.96 %3D Standard error of estimate, SEE = 5.0 c) Based on 95% confidence level, identify the independent variables which can significantly influence demand for MyVi (t 2s. a s005 = 2.06). d) Calculate the price elasticity of demand. Would a reduction in price result in a fall in total revenue? Why or why not? e) Calculate the income elasticity of demand for MyVi. Is MyVi a necessity, inferior or luxury good? Why?