Estimation and Analysis of Demand for Brightness Detergents: Al Sharjah Detergents and Clearing Ind LLC based in
Question:
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: