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.

 

 

 

State	Cigarette Tax	tax	smokingRate
Alabama	$0.675 / 20-pack	0.675	20.2
Alaska	$2.00 / 20-pack	2	17.4
Arizona	$2.00 / 20-pack	2	14.9
Arkansas	$1.15 / 20-pack	1.15	20.2
California	$2.87 / 20-pack	2.87	10
Colorado	$1.94 / 20-pack	1.94	13.5
Connecticut	$4.35 / 20-pack	4.35	12.1
Delaware	$2.10 / 20-pack	2.1	15.9
District of Columbia	$5.02 / 20-pack	5.02	12.7
Florida	$1.339 / 20-pack	1.339	14.8
Georgia	$0.37 / 20-pack	0.37	16.3
Hawaii	$3.20 / 20-pack	3.2	12.3
Idaho	$0.57 / 20-pack	0.57	15.3
Illinois	$2.98 / 20-pack	2.98	14.5
Indiana	$0.995 / 20-pack	0.995	19.2
Iowa	$1.36 / 20-pack	1.36	16.4
Kansas	$1.29 / 20-pack	1.29	16.2
Kentucky	$1.10 / 20-pack	1.1	23.6
Louisiana	$1.08 / 20-pack	1.08	21.9
Maine	$2.00 / 20-pack	2	17.6
Maryland	$3.75 / 20-pack	3.75	12.7
Massachusetts	$3.51 / 20-pack	3.51	12
Michigan	$2.00 / 20-pack	2	18.7
Minnesota	$3.04 / 20-pack	3.04	14.6
Mississippi	$0.68 / 20-pack	0.68	20.4
Missouri	$0.17 / 20-pack	0.17	19.6
Montana	$1.70 / 20-pack	1.7	16.6
Nebraska	$0.64 / 20-pack	0.64	14.7
Nevada	$1.80 / 20-pack	1.8	15.7
New Hampshire	$1.78 / 20-pack	1.78	15.9
New Jersey	$2.70 / 20-pack	2.7	13.1
New Mexico	$2.00 / 20-pack	2	16
New York	$4.35 / 20-pack	4.35	12.7
North Carolina	$0.45 / 20-pack	0.45	18.5
North Dakota	$0.44 / 20-pack	0.44	17
Ohio	$1.60 / 20-pack	1.6	20.8
Oklahoma	$2.03 / 20-pack	2.03	18.9
Oregon	$3.33 / 20-pack	3.33	14.5
Pennsylvania	$2.60 / 20-pack	2.6	17.3
Rhode Island	$4.25 / 20-pack	4.25	13.3
South Carolina	$0.57 / 20-pack	0.57	17.5
South Dakota	$1.53 / 20-pack	1.53	18.3
Tennessee	$0.62 / 20-pack	0.62	19.9
Texas	$1.41 / 20-pack	1.41	14.7
Utah	$1.70 / 20-pack	1.7	7.9
Vermont	$3.08 / 20-pack	3.08	15.1
Virginia	$0.60 / 20-pack	0.6	14
Washington	$3.025 / 20-pack	3.025	12.6
West Virginia	$1.20 / 20-pack	1.2	23.8
Wisconsin	$2.52 / 20-pack	2.52	15.4
Wyoming	$0.60 / 20-pack	0.6	18.4

Answer rating: 100% (QA)

To recreate the graph and perform the regression analysis well follow these steps in Excel 1 Create ... View the full answer