1. Consider the Sherwin-Williams Companyexample discussed in this chapter (seeTa

1. Consider the Sherwin-Williams Companyexample discussed in this chapter (seeTable 4.1). Suppose one is interested in developing a simple regression model with paint sales ( Y ) as the dependent variable and selling price ( P ) as the independent variable.a. Determine the estimated regression line.b. Give an economic interpretation of the estimated intercept ( a ) and slope( b ) coefficients.c. Test the hypothesis (at the .05 level of significance) that there is no relation-ship (that is = 0) between the variables.d. Calculate thecoefficient of determination.e. Perform ananalysis of varianceon the regression including an F -test of theoverall significance of the results (at the .05 level).f. Based on the regression model determine thebest estimateof paint sales ina sales region where the selling price is $14.50. Construct an approximate 95 percent prediction interval.g. Determine the price elasticity of demand at aselling priceof $14.50.