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A market researcher estimates a regression model to determine the factors that influence a consumer's decision to buy Coke instead of Pepsi. The regression equation
A market researcher estimates a regression model to determine the factors that influence a consumer's decision to buy Coke instead of Pepsi. The regression equation estimated is:
where
if the person bought Coke, and if they bought Pepsi.
if there is an advertising display for Coke, and if there is none.
if there is an advertising display for Pepsi, and if there is none.
the price ratio of Coke to Pepsi constructed as
Which of the following is true?
Having a Pepsi display decreases sales of Coke sold by cans, ceteris paribus.
The predicted probability that someone buys Coke may be negative.
The predicted probability that someone buys Coke is not constant and has an Sshape.
None are correct.
Having a Coke display in the store increases the quantity of Coke sold by cans relative to stores with no Coke display, ceteris paribus.
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