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Estimate the demand models specified below. One model is predicting the sales for brand 1 and the other model is predicting the sales for the
Estimate the demand models specified below. One model is predicting the sales for brand 1 and the other model is predicting the sales for the control brand. Use the results of the analysis to determine the predictor variables that should be included and the variables that should be dropped in each model. The models to be estimated are: 1 = 1 + 1 1 + 1 2 + 1 2 = 2 + 2 1 + 2 2 + 2 where 1 = sales for brand 1 at time t 2 = sales for the control brand at time t 1 = price for brand 1 at time t 2 = price for the control brand at time t = a trend term which equals 1,2,...,104 Please DO NOT try any other model specifications OR conduct any variable transformations while estimating these aforementioned demand models
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