Lorena B wishes to estimate for her product Cuts, a non-linear multiplicative demand equation of the...

    

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Lorena B wishes to estimate for her product Cuts, a non-linear multiplicative demand equation of the form Qdx= A PxPxPd1" Where Ods and represent the quantity demanded and price of Cuts, Py, and Pz represent the prices of other products y and z, and I represents per-capita income levels in her market. She hires Anita H, a reputed economist to estimate this demand equation. Suppose Anita H collects the relevant data and organizes them in a worksheet - hoping to estimate 'A', `b', 'c', 'd' and `e' using EXCEL. But the EXCEL package is useful only for linear regression models [which look like Q = A + b P+c]-- which is not what Lorena B wants. What transformation (to the function or to the data) should Anita H use to successfully estimate the multiplicative function using EXCEL ? - Assume that Anita H uses the transformation and organizes her worksheet with 5 columns: Qax Px. Py. Pa, and I and EXCEL gives her the output shown below. Use the output from EXCEL and correctly express the estimated equation. See below for the excel output Lorena B wishes to estimate for her product Cuts, a non-linear multiplicative demand equation of the form Qdx= A PxPxPd1" Where Ods and represent the quantity demanded and price of Cuts, Py, and Pz represent the prices of other products y and z, and I represents per-capita income levels in her market. She hires Anita H, a reputed economist to estimate this demand equation. Suppose Anita H collects the relevant data and organizes them in a worksheet - hoping to estimate 'A', `b', 'c', 'd' and `e' using EXCEL. But the EXCEL package is useful only for linear regression models [which look like Q = A + b P+c]-- which is not what Lorena B wants. What transformation (to the function or to the data) should Anita H use to successfully estimate the multiplicative function using EXCEL ? - Assume that Anita H uses the transformation and organizes her worksheet with 5 columns: Qax Px. Py. Pa, and I and EXCEL gives her the output shown below. Use the output from EXCEL and correctly express the estimated equation. See below for the excel output