Question One Variable Coefficient Mean Value Variable of Constant 4516.3 4988.2 - Own Price (Kwacha) -3590.6 702.8 7.50 Competitors’ Price (Kwacha) 4226.5 851.0 6.50 Income (ZMW 000) 777.1 66.4 40 Population 0.40 0.31 2300 N=48 R2=0.93 Standard error of regression=1442 i) Interpret the value of the constant. ii) How much of the total variation in drink sales does the regression model explain and interpret? iii) Compute the price elasticity of demand for drinks at the firm’s mean price of K7.50 and mean weekly sales quantity of 20,000 drinks. iv) Compute the cross-price elasticity of demand for drinks at the competitor’s mean price of K6.50 and mean weekly sales quantity of 20,000 drinks. v) Define the Standard error of regression and interpret the value. vi) Your colleague, Banda, the Sales Manager feels that the impact of an increase in own price is not significant. Conduct a hypothesis testing on his assertion using 5% level of significance. vii) Furthermore, your colleague, Banda, feels that the impact of an increase in own price on sales is larger than that from his experience. He estimates theimpact to be greater than 4000. Conduct a hypothesis testing on his assertion at 5% level of significance.