Estimation and Analysis of Demand for Brightness Detergents: Al Sharjah Detergents and Clearing Ind LLC based in Sharjah, UAE, is a leading producer and marketer of household laundry detergent and bleach products. The Company rolled out its new Brightness Detergent in 30 regional markets following its success in test markets. Al Sharjah Detergents and Clearing Ind LLC hired a marketing consulting firm to perform a test marketing of product called Brightness Detergent. The marketing consultants collected data on average household income (M), Advertisement Expenditure (PR), and the price of a competitors (AE). At the end of the month, total demand for Brightness Detergent (Q) were tabulated to provide the following data from which the consultants estimated an empirical demand function for the product.

Using the marketing data from the 30 regional markets shown above, estimate the parameters of the linear empirical demand function: Q = a + bP + cPR + dAE + eM

Answer the following questions:

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(P) Regional Quantity Price Markets (Q) Price of Competitor Expenditure Advertisement Household Income (PR) (AE) (M) 1 2580 274 188 1628 106246 2 2354 294 162 1792 103498 3 2310 298 178 1704 99762 4 2598 234 184 1708 87178 5 2332 270 172 1620 85598 6 2372 286 158 1536 111130 7 2586 226 182 1956 75918 8 2644 222 164 1642 94392 9 2676 218 162 1686 100326 10 2320 258 164 1698 78160 11 2586 248 182 1594 86526 12 2826 234 152 1976 102582 13 2598 212 180 1828 76686 14 2476 270 176 1826 78946 15 2934 234 198 1734 103002 16 2178 294 152 1570 75618 17 2406 248 166 1634 82942 18 2948 206 196 1692 93326 19 2470 280 156 1536 111678 20 2734 230 166 1712 94876 21 2620 238 152 1542 108696 22 2662 276 200 1894 90132 23 2586 244 180 1662 88332 24 2874 210 172 1810 110760 25 2330 290 192 1992 77312 26 2656 276 194 1858 92168 27 3030 232 194 2000 104498 28 2446 296 168 1902 101710 29 2586 268 176 1696 109092 30 2430 254 174 1782 76170 (P) Regional Quantity Price Markets (Q) Price of Competitor Expenditure Advertisement Household Income (PR) (AE) (M) 1 2580 274 188 1628 106246 2 2354 294 162 1792 103498 3 2310 298 178 1704 99762 4 2598 234 184 1708 87178 5 2332 270 172 1620 85598 6 2372 286 158 1536 111130 7 2586 226 182 1956 75918 8 2644 222 164 1642 94392 9 2676 218 162 1686 100326 10 2320 258 164 1698 78160 11 2586 248 182 1594 86526 12 2826 234 152 1976 102582 13 2598 212 180 1828 76686 14 2476 270 176 1826 78946 15 2934 234 198 1734 103002 16 2178 294 152 1570 75618 17 2406 248 166 1634 82942 18 2948 206 196 1692 93326 19 2470 280 156 1536 111678 20 2734 230 166 1712 94876 21 2620 238 152 1542 108696 22 2662 276 200 1894 90132 23 2586 244 180 1662 88332 24 2874 210 172 1810 110760 25 2330 290 192 1992 77312 26 2656 276 194 1858 92168 27 3030 232 194 2000 104498 28 2446 296 168 1902 101710 29 2586 268 176 1696 109092 30 2430 254 174 1782 76170

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To estimate the parameters of the linear empirical demand function we will use regression analysis Heres how you can proceed a The linear functional form for the demand for Brightness Detergent is Q a ... View the full answer