Question

Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a seven-state area: Illinois, Indiana, Michigan, Minnesota, Mississippi, Ohio, and Wisconsin. 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. The data for each state are available via the link below--please note there are multiple tabs at the bottom of the spreadsheet, each refers to one of the seven states selling the Kalamazoo Brewing Company’s microbrews.

Excel Data File

Assuming that the underlying demand relation is a linear function of price and income, use your spreadsheet program to obtain least squares estimates of Minnesota’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.

Answer 1

*Answer:

Regression summary output as follows.

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.2926
R Square	0.0856
Adjusted R Square	0.0467
Standard Error	151.1541
Observations	50
ANOVA
	df	SS	MS	F
Regression	2	100540.9347	50270.47	2.200256
Residual	47	1073835.145	22847.56
Total	49	1174376.08
	Coefficients	Standard Error	t Stat	P-value
Intercept	-42.6531	496.5565698	-0.0859	0.931913
Price	2.6174	13.99127624	0.187075	0.852407
Income	14.3165	6.826898346	2.097072	0.041394

Estimated regression equation: Q = - 42.6531 + 2.6174 x Price + 14.3165 x Income

***Please please like this answer so that I can get a small benefit. Please support me . Thankyou***