DEMAND ESTIMATION:SoftDrinks
Demand canbeestimated with experimentaldata, time-seriesdata,orcross-section data.Inthiscase, cross-section data appearin theExcelfile.Softdrinkconsumptionincanspercapitaperyearisrelatedtosix-packprice,incomepercapita,andmeantemperature acrossthe48 contiguousstatesin the UnitedStates.
QUESTIONS
1. Given the data, please construct a multiple line arregression program by MS Excel.
2. Interprete achco efficient of independent variable in the soft drink demand estimated function in question1.
3.Please comment on whether the regression estimated function is a good fi tor not.What is the interpretation of co efficient of determination (R-square)?May we use the estimated function to predict for the future demand?Explain why.
4. How many cans/capita/year on soft drink should before state in which 6-packprice=$1.95, Income/Capita=$23,500,and MeanTemp= 68°F?