You work for a consultancy and a client is interested in knowing the consumer preferences between...

  

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You work for a consultancy and a client is interested in knowing the consumer preferences between pints and shoes. You obtain data on prices and quantities of consumption of shoes and pints for 40 individuals. You also have data on the individuals gender. a. Download and look at the spreadsheet "pints and shoes.xlsx". b. Use the data in "pints and shoes.xlsx" to estimate the parameters of a simple linear demand model for shoes: Si = αo + B₁ Pi + ei where S, is sales of shoes per individual and P; is the average price of shoes paid per person C. Determine whether the coefficient on price is statistically different from zero at the significance levels of 0.01, 0.05 and 0.10. Calculate the point price elasticity of demand across the observed range of prices at £5 intervals. Use the data in "pints and shoes.xlsx", create a dummy variable for gender where 1 is Female and 0 is Male. Include the dummy variable in the model you estimated in question 1.b. d. Estimate a linear demand model for pints where the quantity demanded of pints of beer is the dependent variable and the regressors are the price of pints and the gender: Qi = αo + B₁Z₁ + B₂ Gi + ei where Q₁ is sales of pints per individual, Z, is the average price of pints paid per person, and G₁ is a dummy variable equal to 1 if individual i is a Female and 0 otherwise ID GENDER SHOES (quantity) PINTS (quantity) SHOES (average price per unit) 1 Male 2 Female 3 Female 4 Male 5 Male 6 Female 7 Male 8 Male 9 Female 10 Female 11 Female 12 Male 13 Male 14 Male 15 Male 16 Female 17 Male 18 Male 19 Male 20 Male 21 Female 22 Female 23 Male 24 Female 25 Male 26 Female 27 Male 28 Male 29 Female 30 Female 31 Female 32 Male 33 Male 34 Male 35 Male 36 Female 37 Female 38 Female 39 Female 40 Female 4 5 6 7 6 2 1 1 1 4 3 5 2 5 3 1 1 11 1 2 9 2 2 4 1 5 1 4 4 2 1 1 1 4 3 10 3 2 1 6 25 1 4 10 10 4 10 5 7 1 5 8 14 3 4 1 30 20 24 15 10 1 13 12 5 9 12 18 7 5 3 12 25 30 17 1 9 10 1 4 55 101 89 87 16 114 96 145 147 85 129 146 97 40 57 77 32 21 147 138 71 88 100 41 143 78 116 43 113 88 54 44 105 118 60 63 110 52 103 84 PINTS (average price per unit) 2 5 3 6 5 5 2 6 4 6 3 3 5 2 3 6 2 3 3 2 4 6 2 4 5 4 3 3 5 5 6 3 2 3 3 6 5 6 6 6 Country 2 1 2 3 1 2 2 3 2 1 1 3 2 2 1 3 2 1 2 3 2 2 3 2 1 1 3 3 1 3 3 2 2 2 2 2 2 2 1 2 You work for a consultancy and a client is interested in knowing the consumer preferences between pints and shoes. You obtain data on prices and quantities of consumption of shoes and pints for 40 individuals. You also have data on the individuals gender. a. Download and look at the spreadsheet "pints and shoes.xlsx". b. Use the data in "pints and shoes.xlsx" to estimate the parameters of a simple linear demand model for shoes: Si = αo + B₁ Pi + ei where S, is sales of shoes per individual and P; is the average price of shoes paid per person C. Determine whether the coefficient on price is statistically different from zero at the significance levels of 0.01, 0.05 and 0.10. Calculate the point price elasticity of demand across the observed range of prices at £5 intervals. Use the data in "pints and shoes.xlsx", create a dummy variable for gender where 1 is Female and 0 is Male. Include the dummy variable in the model you estimated in question 1.b. d. Estimate a linear demand model for pints where the quantity demanded of pints of beer is the dependent variable and the regressors are the price of pints and the gender: Qi = αo + B₁Z₁ + B₂ Gi + ei where Q₁ is sales of pints per individual, Z, is the average price of pints paid per person, and G₁ is a dummy variable equal to 1 if individual i is a Female and 0 otherwise ID GENDER SHOES (quantity) PINTS (quantity) SHOES (average price per unit) 1 Male 2 Female 3 Female 4 Male 5 Male 6 Female 7 Male 8 Male 9 Female 10 Female 11 Female 12 Male 13 Male 14 Male 15 Male 16 Female 17 Male 18 Male 19 Male 20 Male 21 Female 22 Female 23 Male 24 Female 25 Male 26 Female 27 Male 28 Male 29 Female 30 Female 31 Female 32 Male 33 Male 34 Male 35 Male 36 Female 37 Female 38 Female 39 Female 40 Female 4 5 6 7 6 2 1 1 1 4 3 5 2 5 3 1 1 11 1 2 9 2 2 4 1 5 1 4 4 2 1 1 1 4 3 10 3 2 1 6 25 1 4 10 10 4 10 5 7 1 5 8 14 3 4 1 30 20 24 15 10 1 13 12 5 9 12 18 7 5 3 12 25 30 17 1 9 10 1 4 55 101 89 87 16 114 96 145 147 85 129 146 97 40 57 77 32 21 147 138 71 88 100 41 143 78 116 43 113 88 54 44 105 118 60 63 110 52 103 84 PINTS (average price per unit) 2 5 3 6 5 5 2 6 4 6 3 3 5 2 3 6 2 3 3 2 4 6 2 4 5 4 3 3 5 5 6 3 2 3 3 6 5 6 6 6 Country 2 1 2 3 1 2 2 3 2 1 1 3 2 2 1 3 2 1 2 3 2 2 3 2 1 1 3 3 1 3 3 2 2 2 2 2 2 2 1 2

Answer rating: 100% (QA)

a The spreadsheet pints and shoesxlsx has been downloaded and reviewed b To estimate the parameters of a simple linear demand model for shoes python import pandas as pd import statsmodelsapi as sm Loa... View the full answer