Chart: Excel Worksheet

Regression Analysis Data (Demand Function Estimation)

ln Q ln Price ln Income

1.07 1.15 4.4

1.07 1.09 4.39

1.08 0.97 4.4

1.08 1.04 4.39

1.09 0.92 4.39

1.08 0.96 4.39

1.1 0.77 4.39

1.1 0.79 4.39

1.08 1.06 4.39

1.07 1.13 4.39

1.08 0.96 4.4

1.08 1.02 4.39

1.09 0.82 4.39

1.07 1.1 4.39

1.09 0.9 4.39

1.1 0.77 4.39

1.09 0.91 4.4

1.08 1.07 4.4

1.09 0.88 4.39

1.07 1.16 4.39

1.08 1.08 4.4

1.08 1 4.39

1.09 0.88 4.39

1.07 1.13 4.4

1.07 1.09 4.39

1.11 0.64 4.39

1.09 0.9 4.39

1.07 1.19 4.4

1.06 1.27 4.39

1.08 0.94 4.39

1.07 1.1 4.4

1.13 0.28 4.39

1.08 0.97 4.4

1.09 0.86 4.4

1.07 1.13 4.39

1.08 1.03 4.39

1.08 0.96 4.39

1.08 0.95 4.4

1.07 1.12 4.4

1.1 0.7 4.4

1.08 0.99 4.39

1.08 0.98 4.39

1.08 1.07 4.4

1.07 1.1 4.4

1.07 1.21 4.39

1.09 0.93 4.39

1.08 1.04 4.4

1.09 0.9 4.39

1.08 0.97 4.39

1.(Excel Worksheet Above).

Using Microsoft Excel, use the data above to estimate a log-linear demand function for alkaline batteries. Carefully answer the following items and questions:

a.Use the Excel Worksheet to estimated demand function as an Excel document.

b.With the Excel Worksheet above :

i.What is the estimated log-linear demand function in 4 decimal points.

ii.Evaluate the overall statistical significance of the estimated demand function.

iii.Evaluate the statistical significance of each independent economic variable in the estimated demand function.

c.Derive the nonlinear (multiplicative) form of the estimated log-linear demand function in (a). Clearly show the steps and calculations in 4 decimal points.

d.With the derived nonlinear function in (c), estimate income elasticity of demand for alkaline batteries. Show what the steps and manual calculations in 4 decimal points.

e.With the derived nonlinear function in (c), calculate the quantity demanded (sales) of alkaline batteries at the unit price of $3.00 and average consumers' income of $80.92. What are the steps and manual (hand and calculator) calculations in 4 decimal points.