Question: Use a scatter plot to recreate the graph on the previous slide. Use Excel's regression tool to estimate the demand schedule. Identify the

Use a scatter plot to recreate the graph on the previous slide.
• Use Excel's regression tool to estimate the demand schedule.
• Identify the following:
• Estimated slope coefficient
• Standard Error and 95% confidence interval
• t and p values
• R2
• Is the estimated slope coefficient statistically significant?
The average tax (T) is $1.92 and the average percent smokers (R) is
16.19. Calculate the tax elasticity: % Change in R divided by %
Change in T.

 

 

 

StateCigarette TaxtaxsmokingRate
Alabama$0.675 / 20-pack0.67520.2
Alaska$2.00 / 20-pack217.4
Arizona$2.00 / 20-pack214.9
Arkansas$1.15 / 20-pack1.1520.2
California$2.87 / 20-pack2.8710
Colorado$1.94 / 20-pack1.9413.5
Connecticut$4.35 / 20-pack4.3512.1
Delaware$2.10 / 20-pack2.115.9
District of Columbia$5.02 / 20-pack5.0212.7
Florida$1.339 / 20-pack1.33914.8
Georgia$0.37 / 20-pack0.3716.3
Hawaii$3.20 / 20-pack3.212.3
Idaho$0.57 / 20-pack0.5715.3
Illinois$2.98 / 20-pack2.9814.5
Indiana$0.995 / 20-pack0.99519.2
Iowa$1.36 / 20-pack1.3616.4
Kansas$1.29 / 20-pack1.2916.2
Kentucky$1.10 / 20-pack1.123.6
Louisiana$1.08 / 20-pack1.0821.9
Maine$2.00 / 20-pack217.6
Maryland$3.75 / 20-pack3.7512.7
Massachusetts$3.51 / 20-pack3.5112
Michigan$2.00 / 20-pack218.7
Minnesota$3.04 / 20-pack3.0414.6
Mississippi$0.68 / 20-pack0.6820.4
Missouri$0.17 / 20-pack0.1719.6
Montana$1.70 / 20-pack1.716.6
Nebraska$0.64 / 20-pack0.6414.7
Nevada$1.80 / 20-pack1.815.7
New Hampshire$1.78 / 20-pack1.7815.9
New Jersey$2.70 / 20-pack2.713.1
New Mexico$2.00 / 20-pack216
New York$4.35 / 20-pack4.3512.7
North Carolina$0.45 / 20-pack0.4518.5
North Dakota$0.44 / 20-pack0.4417
Ohio$1.60 / 20-pack1.620.8
Oklahoma$2.03 / 20-pack2.0318.9
Oregon$3.33 / 20-pack3.3314.5
Pennsylvania$2.60 / 20-pack2.617.3
Rhode Island$4.25 / 20-pack4.2513.3
South Carolina$0.57 / 20-pack0.5717.5
South Dakota$1.53 / 20-pack1.5318.3
Tennessee$0.62 / 20-pack0.6219.9
Texas$1.41 / 20-pack1.4114.7
Utah$1.70 / 20-pack1.77.9
Vermont$3.08 / 20-pack3.0815.1
Virginia$0.60 / 20-pack0.614
Washington$3.025 / 20-pack3.02512.6
West Virginia$1.20 / 20-pack1.223.8
Wisconsin$2.52 / 20-pack2.5215.4
Wyoming$0.60 / 20-pack0.618.4

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