Provide the exact linear regression coefficient outputs and regression statistics. The data set below includes information on
Question:
Provide the exact linear regression coefficient outputs and regression statistics.
The data set below includes information on the quantities consumed of good: American cheese (a proxy for the quantities demanded for this good), the price per unit of this good, the price per unit of at least one related good in consumption (Ham), and a proxy for consumer income.
You will use excel to run a linear regression using this data this is provided. We don't know what the real demand is for this good, but we can use linear regression analysis to obtain a linear approximation of it. In other words, if the unknown demand for this good is
QD = F (P; PR, M)
Where QD is the quantity demanded for this good, P is the price per unit, PR is the price of the related good(s) in consumption (substitute or complement) and M is consumer income.
A linear approximation of this demand equation looks like
QD = a + b P + c PR + d M
You will use the data provided and excel to estimate the unknown parameters a, b, c, and d.
Analyze the regression results and produce useful information for decision making and provide recommendations to the suppliers of this good.
Observation | Quantity Demanded of American Cheese | Price of American Cheese | Price of ham | Average Income |
1985 | 2906.2 | 2.53 | 1.28 | 29066 |
1986 | 2917.2 | 2.6 | 1.47 | 30759 |
1987 | 3011.7 | 2.69 | 1.54 | 32410 |
1988 | 2817.6 | 2.78 | 1.6 | 34017 |
1989 | 2728.1 | 2.93 | 1.67 | 36520 |
1990 | 2783.2 | 3.43 | 1.61 | 37403 |
1991 | 2796.9 | 3.44 | 1.59 | 37922 |
1992 | 2892.6 | 3.32 | 1.64 | 38840 |
1993 | 2944.3 | 3.09 | 1.55 | 41428 |
1994 | 3009.4 | 3.07 | 1.87 | 43133 |
1995 | 3115.1 | 3.07 | 1.94 | 44938 |
1996 | 3184.3 | 3.34 | 2.11 | 47123 |
1997 | 3225.2 | 3.45 | 2.05 | 49692 |
1998 | 3306.5 | 3.59 | 2.28 | 51855 |
1999 | 3546.2 | 3.81 | 2.32 | 54737 |
2000 | 3582.4 | 3.7 | 1.93 | 57135 |
2001 | 3653.2 | 3.87 | 1.85 | 58208 |
2002 | 3696.9 | 3.88 | 1.91 | 57852 |
2003 | 3649.4 | 3.77 | 1.89 | 59067 |
2004 | 3776.9 | 3.98 | 2.12 | 60466 |
2005 | 3750.4 | 3.88 | 2.23 | 63344 |
2006 | 3906.6 | 3.72 | 2.16 | 66570 |
2007 | 3863.5 | 3.84 | 2.25 | 67609 |
2008 | 4002.2 | 4.04 | 0.91 | 68424 |
2009 | 4105.9 | 3.9 | 0.91 | 67976 |
2010 | 4121 | 3.91 | 0.87 | 67392 |
2011 | 4068.1 | 4.07 | 0.99 | 69677 |
2012 | 4165.1 | 4.19 | 0.86 | 71274 |
2013 | 4223.6 | 4.17 | 1.01 | 72641 |
Statistics Unlocking The Power Of Data
ISBN: 9780470601877
1st Edition
Authors: Robin H. Lock, Patti Frazer Lock, Kari Lock Morgan, Eric F. Lock, Dennis F. Lock