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Estimate a linear demand function for the Sunshine Valley brand by calculating the simple regression of units sold (SVE) on weekly average price (SVAVPR). Include the following:
a. Your regression output. Note: it is unnecessary to include a listing of the data and a listing of the residuals. (Please don't do it!) On the output clearly label the total variation for the dependent variable, the coefficient of determination, the standard error of estimate, and the intercept and slope coefficients.
b. A plot of the residual values as a function of weekly average price. Make sure your plot is large enough so one can comfortably read it!
c. A calculation of the estimate of the demand for the Sunshine Valley brand at prices of $25, $30, and $35.
d. A brief (no more than one-quarter page) assessment of the model as a demand function for Sunshine Valley. Concentrate on one or two things that are good and bad with this model.
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