Group Task 1 – Soft Drink Example
Economics 3315: Managerial Economics
Case 1: Soft Drink Example
A study on soft drink ingestion across the twenty four contiguous claims in the United States was conducted. The attached dataset describes the consumption over the US. There are 48 factors which are the declares and some variables that are Cans/Capita/Yr, 6-Pck Price, Income/Capita, and Mean Temp. Out of these variables, we have reliant and 3rd party variables. In this study, Cans/Capita/Yr is the centered variable, while 6-Pack Selling price, Income/Capita and Mean Temp are the impartial variables. Through the analysis, the info was manipulated to see the way the independent parameters affect each other and the based mostly variable. The case study will determine the estimated demand for soft drink consumption, interpret the associated rapport, and calculate the price flexibility of softdrink demand with the mean. 1 ) Estimate the necessity for sodas.
Multiple Regression Equation (Theoretical):
soft drink require = 514. 27 - 242. 97 *6-pack selling price +1. thirty-six *income & 2 . 93 *mean temp+ e Multiple Regression Formula (Estimated):
softdrink demand sama dengan 514. twenty seven - 242. 97 *6-pack price plus one. 36 *income + installment payments on your 93 *mean temp 2 . Interpret the coefficients and calculate the price elasticity of soft drink require at the imply (use the mean ideals of the self-employed variables to make a prediction in quantity demanded of fizzy drinks. Use that value once computing the cost elasticity of soft drink require at the suggest. The price of soft drinks is an inverse determinant of the amount demanded pertaining to soft drinks. Put simply, price is not directly related to the quantity demanded to get soft drinks. While the price of softdrink changes, the quantity demanded for soft drinks will change in the opposing direction. One change in selling price will result in a change in the with regard to soft drinks of 242. ninety-seven in the reverse direction. Income is directly related to the amount demanded pertaining to soft...