Question: The following table presents data on sales (S), advertising (A), and price (P): a. Estimate the following demand models: (i) S = + 1A

The following table presents data on sales (S), advertising (A), and price (P):

a. Estimate the following demand models:
(i) S = Î± + Î²1A + Î²2P
(ii) S = Î±AÎ²1PÎ²2
b. Determine whether the estimated values of Î²1 and Î²2 are statistically significant (at the .05 level).
c. Based on the value of R2 and the F-ratio, which model gives the bestfit?

OBSERVATION SALES (S) ADVERTISING (A) PRICE (P) 150 180 135 135 120 120 150 150 165 150 495 900 1200 750 1350 600 600 1500 750 1,050 675 360 405 735 10 600 1200

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