For each of the six markets, the firm has collected eight quarters of data for a total of 48 observations. Each observation consists of data on quantity demanded (number of pies purchased per week), price per pie, competitor’s average price per pie, income and population. The company has also included a time-trend variable for each observation. A value of 1 denotes the first quarter observation, 2 the second quarter, and so on, up to 8 for the eighth and last quarter.
A). Which of the explanatory variables in the regression are statistically significant? Explain.
How much of the total variation in pie sales does the regression model explain?