Multiple regression The data presented in this case requires the use of a multiple regression as there is more than one independent variable. In this case, there are three independent variables, the price per six pack per capita, income per capita, and mean temperature. The demand for soft drinks can be estimated using the equation regression equation below: = = 2.88 The formula above estimates the demand for cans of soda consumed (dependent variable) based on the three independent variables previously mentioned. Based on the coefficients for each dependent variable, if the price of a six pack of soda increased by $1, then demand for sodas cans will decrease by 248.88 cans (rounded to 249). If the income per capita increased by one unit, then the demand of soda cans will increase by 1.3 units (2 units if we round up to the nearest whole number). If the temperature rises by 1 degree, then the consumption of soda cans will increase by 2.88 units (3 cans if we round to the nearest whole number). In this case, the coefficient of determination (R2) is 69.25 which means the 3 variables together explain 69.25 % of the variability of the consumption of