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In the year 2000, the outbreak of a new disease affecting cattle had a devastating impact on the farming industry. Known as 'whooping cow disease',
In the year 2000, the outbreak of a new disease affecting cattle had a devastating impact on the farming industry. Known as 'whooping cow disease', fear of the virus quickly spread throughout the world causing people to avoid consumption of cattle and cattle related products such as dairy goods. Many brands of chocolate use milk or milk powder in their production. How do you think this virus would affect chocolate sales? At the same time, certain brands of chocolate do not use milk in their production. How do you think their sales will be affected? Refine the model you created in step 3 by adding a dummy variable to represent the one-off occurrence of whooping cow disease'. In other words, estimate the following model: Where D = Disease dummy variable What is the overall impact of the disease? How do your findings compare to your observations in step 1? Comment on your findings
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