Assignment 1: Estimation of Demand Provide a copy of your written answers by Wednesday, October 21, 2015. You will be contacted with the details on...

please answer in more details for part d,e,f.

{rtf1ansiansicpg936cocoartf1038cocoasubrtf360{fonttblf0fswissfcharset0 Helvetica;}{colortbl;red255green255blue255;red0green0blue0;}pardtx560tx1120tx1680tx2240tx2800tx3360tx3920tx4480tx5040tx5600tx6160tx6720qlqnaturalpardirnaturalf0fs23fsmilli11955 cf2 Cascade Pharmaceuticals Company devel- oped the following regression model, using time series data from the past 33 quarters, for one of its nonprescription cold remedies:Y = uc0u9251 1:04 + 0:24Xfs15fsmilli7970 cf2 1 fs23fsmilli11955 cf2 uc0u9251 0:27Xfs15fsmilli7970 cf2 2\fs23fsmilli11955 cf2 where Y = quarterly sales (in thousands of cases) of the cold remedy, Xfs15fsmilli7970 cf2 1 fs23fsmilli11955 cf2 = Cascade's quarterly advertising (in $ 1,000) for the cold remedy, and Xfs15fsmilli7970 cf2 2 fs23fsmilli11955 cf2 = competitors' advertising for similar products (in $ 1,000).Additional information concerning the regression model:sfs15fsmilli7970 cf2 bfs11fsmilli5978 cf2 1fs23fsmilli11955 cf2 = 0:032sfs15fsmilli7970 cf2 bfs11fsmilli5978 cf2 2fs23fsmilli11955 cf2 = 0:070 Rfs15fsmilli7970 cf2 2 fs23fsmilli11955 cf2 = 0:64sfs15fsmilli7970 cf2 e fs23fsmilli11955 cf2 = 1:63F -statistic = 31:402Durbin-Watson (d) statistic 0:4995 (a) Which of the independent variables (if any) appear to be statistically signi cant (atthe 0.05 level) in explaining sales of the cold remedy?(b) What proportion of the total variation in sales is explained by the regression equa- tion?(c) Perform an F-test (at the 0.05 level) of the overall explanatory power of the model. (d) What conclusions can be drawn from the data about the possible presence of auto-correlation?(e) How do the results in part (d) a ect your answer to parts (a), (b), and (c)?(f) What additional statistical information (if any) would yound useful in the evalua- tion of this model?2}