Estimate the demand for soft drinks from the attached table data 1 Demand for soft drinks in each of the 48 continental states for a given year. 2 Present the results in the form of a short report with the following elements 1. Introduction to the Report, and Expected Marks of Transactions for Each Variable Using high-quality academic resources in the field, why do you think these factors influence the demand function?

2. Analysis for each variable in the model. This should include: 1 explanation for each estimator parameter 2 Discuss whether the mark of the estimated coefficient meets your expectations 3 Test the validity of each variable using the probability value

3. Calculate the point price elasticity, point income elasticity, and cross price elasticity of soft drinks. Give an explanation for each calculated elasticity. Based on the assessed flexibility, answer the following questions: ? Should soft drink companies increase or decrease the price to increase revenue from soft drinks? ? Are soft drinks normal or poor quality in this case? ? What is the relationship between soft drinks and bottled water?

. Provide a brief conclusion. Summarize why you think the model is good or not. Select the variables are important and which are not. In a second paragraph, discussing potential problems that may be relevant in this case. This includes the problems that lead to them and potential solutions.

A C D E Cans Bought Pack Price Per Capita Income Price of Water Population Cost of Living 2 Stat Millions] (Cents] [Thousands] (Cents Per Bould] (Millions ] Alabama 981 196 $49 90 49 Arizona 1126 193 $58 20 30 97 Arkansas 712 168 $47-10 46.9 California 6347 193 $716 30 43 3916 151.7 Colorado 715 242 $72 00 69 105 6 Connecticutt 426 318 $76 30 32 127-7 Delaware 305 215 564 80 28 1.4 108 10 Florida 6301 224 3/5 215 Georgia 3187 165 1018 12 Idaho 163 221 506.60 21 1.9 3 Ilinois 1437 22:2 25 12 6 34 5 14 Indiana 1252 197 $36.70 24 16 Lowa 334 189 $60 00 23 32 416 193 29 89 17 Kentucky 1036 186 560.20 26 45 90.9 18 Louisiana 1238 185 $47.90 33 4.6 19 Maine 156 257 24 1.4 117 5 20 Maryland 1325 273 583 20 6.1 129.7 21 Massachusetts 788 301 $79 80 31 6.9 131.6 22 Michigan 1081 200 $56.70 21 10 83.9 23 Minnesota 617 235 $70 30 21 67 1016 4 Mississippi 745 170 $44.70 28 3 86.1 25 Missouri 1260 169 25 62 87-1 28 Montana 247 $86 30 24 1-1 27 Nebraska 195 207 $68 60 22 28 Nevada 532 238 568.60 26 3.2 108 5 29 New Hampshire 249 249 $716.00 19 1.4 109 7 30 New Jersey 1274 289 $81-70 34 89 125.1 31 New Mexico 231 190 $47.20 25 21 32 New York 2143 338 $67180 34 19 3 139-1 33 North Carolina 3532 179 $63 90 28 10.7 34 North Dakota 51 230 563.80 20 Ohio 1932 201 $56.10 23 11.7 36 Oklahoma 737 191 $51.90 38 4 37 Oregon 302 563 40 34 4.3 134 2 30 Pennsylvania 393 235 12 8 101-7 39 Rhode Island 153 266 564.30 30 1-1 119.4 40 South Carolina 1257 185 $52 30 31 5.3 41 South Dakota 87 234 $56.30 23 0.9 42 Tennessee 1629 194 $62 40 27 6.9 837 43 Texas 8584 190 32 29 7 91 5 44 Utah 331 233 $71-40 25 3.3 15 Vermont 39 270 $60 80 25 0.6 114 5 46 2323 206 $72 60 29 8.6 100.7 7 Washington 802 242 $74-10 27 110.7 48 West Virginia 192 $44-10 25 1.8 91-1 49 Wisconsin 673 232 560 80 23 6.9 0 Wyoming 62 208 $61 60 21 The Data Variables +Cans Bought Cans bought in each state, in millions 6-Pack Price Price of a six-pack of soft drinks, in cents to make interpretation easier Per Capita Income Per capita nominal income, in thousands of dollars Price of Water Price of a bottle of water, in cents Population Population of each state, in millions Cost of Living Cost of living index for each state, can be used as a proxy for the Consumer Price Index (Source: World Population Review) The Data Variables +