Demand can be estimated with experimental data, time-series data, or cross-section data. In this case, cross-section data appear in the Excel file. Soft drink consumption in cans per capita per year is related to six-pack price, income per capita, and mean temperature across the 48 contiguous states in the United States. Questions Howmanycans/capita/yearonsoftdrinkshouldbeforastateinwhich6-packprice=$1.95,Income/Capita=$23,500, and Mean Temp= 68 F ? Now omit the price and temperature from the regression equation. Should a marketing plan for soft drinks be designed that relocates most canned drink machines into low-income neighborhoods ? Why or why not ? TABLE 1. SOFT DRINK DEMAND DATA State Cans/Capita/Yr 6-Pack Price ($) Income/Capita ($1,000) Mean Temp. (F) Alabama 200 2.19 11.7 66 Arizona 150 1.99 15.3 62 Arkansas 237 1.93 9.9 63 California 135 2.59 22.5 56 Colorado 121 2.29 17.1 52 Connecticut 118 2.49 24.3 50 Delaware 217 1.99 25.2 52 Florida 242 2.29 16.2 72 Georgia 295 1.89 12.6 64 Idaho 85 2.39 14.4 46 Illinois 114 2.35 21.6 52 Indiana 184 2.19 18 52 Iowa 104 2.21 14.4 50 Kansas 143 2.17 15.3 56 Kentucky 230 2.05 11.7 56 Louisiana 269 1.97 13.5 69 Maine 111 2.19 14.4 41 Maryland 217 2.11 18.9 54 Massachusetts 114 2.29 19.8 47 Michigan 108 2.25 18.9 47 Minnesota 108 2.31 16.2 41 Mississippi 248 1.98 9 65 Missouri 203 1.94 17.1 57 Montana 77 2.31 17.1 44 Nebraska 97 2.28 14.4 49 Nevada 166 2.19 21.6 48 New Hampshire 177 2.27 16.2 35 New Jersey 143 2.31 21.6 54 New Mexico 157 2.17 13.5 56 New York 111 2.43 22.5 48 North Carolina 330 1.89 11.7 59 North Dakota 63 2.33 12.6 39 Ohio 165 2.21 19.8 51 Oklahoma 184 2.19 14.4 82 Oregon 68 2.25 17.1 51 Pennsylvania 121 2.31 18 50 Rhode Island 138 2.23 18 50 South Carolina 237 1.93 10.8 65 South Dakota 95 2.34 11.7 45 Tennessee 236 2.19 11.7 60 Texas 222 2.08 15.3 69 Utah 100 2.37 14.4 50 Vermont 64 2.36 14.4 44 Virginia 270 2.04 14.4 58 Washington 77 2.19 18 49 West Virginia 144 2.11 13.5 55 Wisconsin 97 2.38 17.1 46 Wyoming 102 2.31 17.1 46

Demand can be estimated with experimental data, time-series data, or cross-section data. In this case, cross-section data appear in the Excel file. Soft drink consumption in cans per capita per year is related to six-pack price, income per capita, and mean temperature across the 48 contiguous states in the United States. Questions Howmanycans/capita/yearonsoftdrinkshouldbeforastateinwhich6-packprice=$1.95,Income/Capita=$23,500, and Mean Temp= 68 F ? Now omit the price and temperature from the regression equation. Should a marketing plan for soft drinks be designed that relocates most canned drink machines into low-income neighborhoods ? Why or why not ? TABLE 1. SOFT DRINK DEMAND DATA State Cans/Capita/Yr 6-Pack Price ($) Income/Capita ($1,000) Mean Temp. (F) Alabama 200 2.19 11.7 66 Arizona 150 1.99 15.3 62 Arkansas 237 1.93 9.9 63 California 135 2.59 22.5 56 Colorado 121 2.29 17.1 52 Connecticut 118 2.49 24.3 50 Delaware 217 1.99 25.2 52 Florida 242 2.29 16.2 72 Georgia 295 1.89 12.6 64 Idaho 85 2.39 14.4 46 Illinois 114 2.35 21.6 52 Indiana 184 2.19 18 52 Iowa 104 2.21 14.4 50 Kansas 143 2.17 15.3 56 Kentucky 230 2.05 11.7 56 Louisiana 269 1.97 13.5 69 Maine 111 2.19 14.4 41 Maryland 217 2.11 18.9 54 Massachusetts 114 2.29 19.8 47 Michigan 108 2.25 18.9 47 Minnesota 108 2.31 16.2 41 Mississippi 248 1.98 9 65 Missouri 203 1.94 17.1 57 Montana 77 2.31 17.1 44 Nebraska 97 2.28 14.4 49 Nevada 166 2.19 21.6 48 New Hampshire 177 2.27 16.2 35 New Jersey 143 2.31 21.6 54 New Mexico 157 2.17 13.5 56 New York 111 2.43 22.5 48 North Carolina 330 1.89 11.7 59 North Dakota 63 2.33 12.6 39 Ohio 165 2.21 19.8 51 Oklahoma 184 2.19 14.4 82 Oregon 68 2.25 17.1 51 Pennsylvania 121 2.31 18 50 Rhode Island 138 2.23 18 50 South Carolina 237 1.93 10.8 65 South Dakota 95 2.34 11.7 45 Tennessee 236 2.19 11.7 60 Texas 222 2.08 15.3 69 Utah 100 2.37 14.4 50 Vermont 64 2.36 14.4 44 Virginia 270 2.04 14.4 58 Washington 77 2.19 18 49 West Virginia 144 2.11 13.5 55 Wisconsin 97 2.38 17.1 46 Wyoming 102 2.31 17.1 46

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 1.1CE

See similar textbooks

Related questions

Question

Questions

Howmanycans/capita/yearonsoftdrinkshouldbeforastateinwhich6-packprice=$1.95,Income/Capita=$23,500, and Mean Temp= 68 F ?
Now omit the price and temperature from the regression equation. Should a marketing plan for soft drinks be designed that relocates most canned drink machines into low-income neighborhoods ? Why or why not ?

TABLE 1. SOFT DRINK DEMAND DATA
State	Cans/Capita/Yr	6-Pack Price ($)	Income/Capita ($1,000)	Mean Temp. (F)
Alabama	200	2.19	11.7	66
Arizona	150	1.99	15.3	62
Arkansas	237	1.93	9.9	63
California	135	2.59	22.5	56
Colorado	121	2.29	17.1	52
Connecticut	118	2.49	24.3	50
Delaware	217	1.99	25.2	52
Florida	242	2.29	16.2	72
Georgia	295	1.89	12.6	64
Idaho	85	2.39	14.4	46
Illinois	114	2.35	21.6	52
Indiana	184	2.19	18	52
Iowa	104	2.21	14.4	50
Kansas	143	2.17	15.3	56
Kentucky	230	2.05	11.7	56
Louisiana	269	1.97	13.5	69
Maine	111	2.19	14.4	41
Maryland	217	2.11	18.9	54
Massachusetts	114	2.29	19.8	47
Michigan	108	2.25	18.9	47
Minnesota	108	2.31	16.2	41
Mississippi	248	1.98	9	65
Missouri	203	1.94	17.1	57
Montana	77	2.31	17.1	44
Nebraska	97	2.28	14.4	49
Nevada	166	2.19	21.6	48
New Hampshire	177	2.27	16.2	35
New Jersey	143	2.31	21.6	54
New Mexico	157	2.17	13.5	56
New York	111	2.43	22.5	48
North Carolina	330	1.89	11.7	59
North Dakota	63	2.33	12.6	39
Ohio	165	2.21	19.8	51
Oklahoma	184	2.19	14.4	82
Oregon	68	2.25	17.1	51
Pennsylvania	121	2.31	18	50
Rhode Island	138	2.23	18	50
South Carolina	237	1.93	10.8	65
South Dakota	95	2.34	11.7	45
Tennessee	236	2.19	11.7	60
Texas	222	2.08	15.3	69
Utah	100	2.37	14.4	50
Vermont	64	2.36	14.4	44
Virginia	270	2.04	14.4	58
Washington	77	2.19	18	49
West Virginia	144	2.11	13.5	55
Wisconsin	97	2.38	17.1	46
Wyoming	102	2.31	17.1	46

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here