Question: Can you show me how to work out each problem? Please and thank you. Demand estimation Q=f (price, income) Linear Specification Q=+1P+2I=intercept1=pricecoefficient2=incomecoefficient Using the data
Can you show me how to work out each problem? Please and thank you.




Demand estimation Q=f (price, income) Linear Specification Q=+1P+2I=intercept1=pricecoefficient2=incomecoefficient Using the data provided to you in excel file, estimate the demand equation or specification provided above. The data consists of the quantity and price (per case) of Fanta (soft drink) sold in each state, as well as the average income (in thousands of dollars) of consumers living in various regions of each state. Please note there are multiple tabs at the bottom of the spreadsheet, each refers to one of the seven states selling the Fanta. Assuming that the underlying demand relation is a linear function of price and income, use your spreadsheet program to obtain least squares estimates of one of the state's demand for Fanta. 3. What is the R-square value? What does it show? 4. Are all the estimated equations significant? 5. What will happen to the quantity demanded for Fanta if its price goes up by $1 ? 6. What will happen to the demand for Fanta if the income of a consumer goes up by $100 ? Data for IL \begin{tabular}{|r|r|r|r|} \hline 45 & 560 & 27.94 & 35.06 \\ \hline 46 & 848 & 29.74 & 32.71 \\ \hline 47 & 617 & 29.54 & 37.96 \\ \hline 48 & 530 & 31.34 & 37.38 \\ \hline 49 & 649 & 30.08 & 35.55 \\ \hline 50 & 824 & 29.13 & 42.89 \\ \hline 51 & 626 & 31.72 & 37.17 \\ \hline \end{tabular} Data for IL Demand estimation Q=f (price, income) Linear Specification Q=+1P+2I=intercept1=pricecoefficient2=incomecoefficient Using the data provided to you in excel file, estimate the demand equation or specification provided above. The data consists of the quantity and price (per case) of Fanta (soft drink) sold in each state, as well as the average income (in thousands of dollars) of consumers living in various regions of each state. Please note there are multiple tabs at the bottom of the spreadsheet, each refers to one of the seven states selling the Fanta. Assuming that the underlying demand relation is a linear function of price and income, use your spreadsheet program to obtain least squares estimates of one of the state's demand for Fanta. 3. What is the R-square value? What does it show? 4. Are all the estimated equations significant? 5. What will happen to the quantity demanded for Fanta if its price goes up by $1 ? 6. What will happen to the demand for Fanta if the income of a consumer goes up by $100 ? Data for IL \begin{tabular}{|r|r|r|r|} \hline 45 & 560 & 27.94 & 35.06 \\ \hline 46 & 848 & 29.74 & 32.71 \\ \hline 47 & 617 & 29.54 & 37.96 \\ \hline 48 & 530 & 31.34 & 37.38 \\ \hline 49 & 649 & 30.08 & 35.55 \\ \hline 50 & 824 & 29.13 & 42.89 \\ \hline 51 & 626 & 31.72 & 37.17 \\ \hline \end{tabular} Data for IL
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