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.

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

Q = + Price + Income

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 |

Answer #1

Excel regression summary output:

SUMMARY OUTPUT | ||||||

Regression Statistics | ||||||

Multiple R | 0.29259565 | |||||

R Square | 0.08561221 | |||||

Adjusted R Square | 0.04670209 | |||||

Standard Error | 151.154081 | |||||

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 |

Regression equation: Q = **- 42.65 + 2.62 x** Price
**+ 14.32 x** Income

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...

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...

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...

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...

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