A soft-drink bottler collected the following monthly data on its sales of 12-ounce cans at different prices.

a. Use a regression program to estimate a linear demand equation. If price is cut by $.10, by how much will the volume of sales increase?
b. Plot the 12 data points and the estimated regression line on a quantity-price graph. Does the scatter of points look linear?
c. Use a log-linear regression to estimate a demand curve of the form: Q = kP

Transcribed Image Text:

Month 1 2345 678 910 12 45 50 45 40 35 35 50.55 45 .5040 40 Quantity 98 80 95 123 163 168 82 68 96 77 130 125 Price