Question: Using the data on Soft Drinks in the U.S. The consumption of soft drinks in cans per capita per year across 48 selected provinces in

Using the data on Soft Drinks in the U.S. The consumption of soft drinks in cans per capita per year across 48 selected provinces in the country is linked to six-pack price, income per capita, and mean temperature (price and income are in dollar value for purpose of international comparison made in one particular study). A. Given the data, construct a multiple linear regression equation model of the U.S. demand for soft drinks. (2 points) B. Estimate the multiple linear regression model using the actual data on softdrinks. (You can use Excel to run your regression and present the results here.) (5 points) C. Given the Excel output Interpret each of the coefficients of the independent variables. (6 points) D. Are the estimated coefficients of the independent variables significant? Explain and justify your answers. (10 points) E. From a simple linear regression model of the demand (i.e., based only on price of softdrinks) to a multiple linear regression (i.e., the other factors are considered), should a marketing plan for soft drinks be designed that relocates most canned drink machines into low-income neighborhoods? Please explain your answer in the language of economics. (10 points)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!