uppose the Kalamazoo Brewing Company (KBC) currently sells its
microbrews in Illinoise. 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.
Assuming that the underlying demand relation is a linear function
of price and income, use the data provided to obtain least squares
estimates of Illinois’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.
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 |
Q = __+__ Price__ +__ Income
Excess regression summary output as follows.
SUMMARY OUTPUT | ||||||
Regression Statistics | ||||||
Multiple R | 0.29 | |||||
R Square | 0.09 | |||||
Adjusted R Square | 0.05 | |||||
Standard Error | 151.15 | |||||
Observations | 50 | |||||
ANOVA | ||||||
df | SS | MS | F | Significance F | ||
Regression | 2 | 100540.9347 | 50270.47 | 2.200256 | 0.12205759 | |
Residual | 47 | 1073835.145 | 22847.56 | |||
Total | 49 | 1174376.08 | ||||
Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |
Intercept | -42.65 | 496.56 | -0.09 | 0.93 | -1041.60 | 956.29 |
Price | 2.62 | 13.99 | 0.19 | 0.85 | -25.53 | 30.76 |
Income | 14.32 | 6.83 | 2.10 | 0.04 | 0.58 | 28.05 |
Estimated regression equation:
Q = -42.65 + 2.62 x Price + 14.32 x Income
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