REGION L 2 3 1 = SALES (Y) ('000 gallons) 160 220 140 190 130 ADVERTISING EXPENSES (A) ($'000) 150 160 50 190 90 SELLING PRICE (P) ($/gallon) 15.00 13.50 16.50 14.50 1700 DISPOSABLE INCOME (M) ($'000) 19.0 17.5 14.0 21.0 155

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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       E4

You have been presented with the following data and asked to fit statistical demand functions:

REGION
1
2
3
4
5
7
8
10
SALES
(Y)
('000
gallons)
160
220
140
190
130
160
200
150
210
190
ADVERTISING
EXPENSES (A)
($'000)
150
160
50
190
90
60
140
110
200
100
SELLING
PRICE (P)
($/gallon)
15.00
13.50
16.50
14.50
17.00
16.00
13.00
18.00
12.00
15.50
Use any multiple regression packages to estimate a
linear relationship between the dependent variable
and the independent variables.
a. Non-linear relationship.
i. Estimate a logarithmic form of the demand function.
ii. Is the estimated demand function 'good'? Explain
your answer.
ii. Compare with the linear form above. Elaborate.
DISPOSABLE
INCOME (M)
($'000)
19.0
17.5
14.0
21.0
15.5
14.5
21.5
18.0
18.5
20.0
Transcribed Image Text:REGION 1 2 3 4 5 7 8 10 SALES (Y) ('000 gallons) 160 220 140 190 130 160 200 150 210 190 ADVERTISING EXPENSES (A) ($'000) 150 160 50 190 90 60 140 110 200 100 SELLING PRICE (P) ($/gallon) 15.00 13.50 16.50 14.50 17.00 16.00 13.00 18.00 12.00 15.50 Use any multiple regression packages to estimate a linear relationship between the dependent variable and the independent variables. a. Non-linear relationship. i. Estimate a logarithmic form of the demand function. ii. Is the estimated demand function 'good'? Explain your answer. ii. Compare with the linear form above. Elaborate. DISPOSABLE INCOME (M) ($'000) 19.0 17.5 14.0 21.0 15.5 14.5 21.5 18.0 18.5 20.0
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