Suppose the Kalamazoo Brewing Company (KBC) currently sells its
microbrews in a seven-state area: Illinois, Indiana, Michigan,
Minnesota, Mississippi, Ohio, and Wisconsin. The company’s
marketing department has collected data from its distributors in
each state. This data consists of the quantity and price (per case)
of microbrews sold in each state, as well as the average income (in
thousands of dollars) of consumers living in various regions of
each state. The data for each state are available via the link
below--please note there are multiple tabs at the bottom of the
spreadsheet, each refers to one of the seven states selling the
Kalamazoo Brewing Company’s microbrews.
Excel Data File
Assuming that the underlying demand relation is a linear function
of price and income, use your spreadsheet program to obtain least
squares estimates of Mississippi’s demand for KBC microbrews.
Instruction: If the estimate is
negative, enter a negative number (-) in the equation. Enter your
responses rounded to two decimal places.
Q = _+_ Price +_ Income
Quantity | Price | Income |
575 | 31.26 | 33.95 |
674 | 30.69 | 35.51 |
616 | 31.54 | 28.78 |
183 | 27.41 | 30.44 |
501 | 29.75 | 31.28 |
578 | 29.48 | 33.77 |
590 | 28.94 | 38.31 |
445 | 28.17 | 34.01 |
603 | 28.58 | 32.53 |
713 | 28.57 | 31.69 |
337 | 30.06 | 32.26 |
230 | 29.36 | 31.57 |
403 | 28.81 | 32.75 |
383 | 32.52 | 29.48 |
568 | 32.02 | 35.91 |
698 | 32.91 | 34.85 |
826 | 28.45 | 34.06 |
789 | 26.85 | 38.92 |
645 | 30.49 | 35.94 |
601 | 31.72 | 38.05 |
467 | 31.23 | 36.48 |
429 | 31.28 | 37.61 |
552 | 28.89 | 38.29 |
553 | 31.13 | 36.9 |
562 | 27.52 | 39.22 |
352 | 30.02 | 34.21 |
611 | 31.38 | 33.97 |
346 | 29.08 | 38.53 |
354 | 28.8 | 34.4 |
401 | 27.64 | 34.01 |
253 | 30.47 | 34.24 |
524 | 30.97 | 38.29 |
211 | 32.85 | 34.66 |
666 | 30.11 | 41.38 |
468 | 29.48 | 32.14 |
585 | 28.41 | 29.16 |
578 | 29.96 | 35.05 |
656 | 30.46 | 37.11 |
571 | 32.86 | 32.94 |
454 | 28.49 | 32.7 |
510 | 30.67 | 33.14 |
672 | 31.92 | 33.73 |
499 | 28.44 | 41.92 |
560 | 27.94 | 35.06 |
848 | 29.74 | 32.71 |
617 | 29.54 | 37.96 |
530 | 31.34 | 37.38 |
649 | 30.08 | 35.55 |
824 | 29.13 | 42.89 |
626 | 31.72 | 37.17 |
Solution:-
Excel regression results of the given data are below:
Thus, the regression equation becomes :
Quantity = 12.28 Price + 4.39 Income ..
Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a seven-state area: Illinois, Indiana,...
Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a seven-state area: Illinois, Indiana, Michigan, Minnesota, Mississippi, Ohio, and Wisconsin. The company’s marketing department has collected data from its distributors in each state. This data consists of the quantity and price (per case) of microbrews sold in each state, as well as the average income (in thousands of dollars) of consumers living in various regions of each state. The data for each state are available via the link...
Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a seven-state area: Illinois, Indiana, Michigan, Minnesota, Mississippi, Ohio, and Wisconsin. The company’s marketing department has collected data from its distributors in each state. This data consists of the quantity and price (per case) of microbrews sold in each state, as well as the average income (in thousands of dollars) of consumers living in various regions of each state. The data for each state are available via the link...