Estimate the demand for soft drinks

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Reference no: EM133078868

Estimate the demand for soft drinks from the attached table data 1 Demand for soft drinks in each of the 48 continental states for a given year. 2 Present the results in the form of a short report with the following elements

1. Introduction to the Report, and Expected Marks of Transactions for Each Variable Using high-quality academic resources in the field, why do you think these factors influence the demand function?

2. Analysis for each variable in the model. This should include:

1 explanation for each estimator parameter

2 Discuss whether the mark of the estimated coefficient meets your expectations

3 Test the validity of each variable using the probability value

3. Calculate the point price elasticity, point income elasticity, and cross price elasticity of soft drinks. Give an explanation for each calculated elasticity. Based on the assessed flexibility, answer the following questions:

  • Should soft drink companies increase or decrease the price to increase revenue from soft drinks?
    Are soft drinks normal or poor quality in this case?
    What is the relationship between soft drinks and bottled water?
  • Provide a brief conclusion. Summarize why you think the model is good or not. Select the variables are important and which are not. In a second paragraph, discussing potential problems that may be relevant in this case. This includes the problems that lead to them and potential solutions.

Reference no: EM133078868

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