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Estimate a multiplicative demand function for the San Francisco Bread Co. Report your parameter estimates and regression statistics for the multiplicative model. Describe the statistical
- Estimate a multiplicative demand function for the San Francisco Bread Co. Report your parameter estimates and regression statistics for the multiplicative model.
- Describe the statistical significance of each of the independent variables included in the San Francisco Bread Company multiplicative demand equation. Interpret the coefficient of determination and F statistic for the multiplicative model.
What is your estimate of the price elasticity of demand, advertising elasticity of demand, income elasticity of demand, and cross-price elasticity of demand in the multiplicative model? Compare these elasticity estimates with the corresponding elasticities in the linear model when calculated at mean values for each variable.
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