Suppose that a soft-drink bottler has collected data on its sales of 12-ounce cans at different prices Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
0.45 0.5 0.45 0.4 0.35 0.35 0.5 0.55 0.6 0.5 0.4 0.4 0.5 0.55 0.45 0.35 0.3 0.35
Estimate, using excel, and state the linear demand equation with Q as the dependent variable (round your answer to 1 decimal). The summery output from excel must be attached for credit
What can you say about the statistical significance of the entire regression model – what is the risk of this entire model having no explanatory power?
What is the price elasticity of demand when the price of the soft-drink is $0.42? Round you answer to 1 decimal
Assume instead that demand is an exponential equations in the form Q=KPB. Use a log-linear regression to estimate K and B and state the equation in both its log-linear form and exponential form (round you answer to two decimals). The summery output from excel must be attached for credit
What is elasticity of demand in this new equation?
Which equation (part a or part d) fits the data better? Motivate your answer
