The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:Q = a + bP +cM +dPRwhere Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and PR is the price of a related product. The results of the estimation are presented below:
Given the above, at the 1% level of significance, the critical value of the t-statistic used by Conlan to test for statistical significance has ________ degrees of freedom and is equal to ________.
A. 32; 36.14
B. 30; 2.750
C. 32; 4.57
D. 32; 0.7984
E. 28; 2.763
Answer: E
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