(k) (2.5 points) Are the two products (canned and bottled beer) complements or substitutes? How will the demand for a. six-pack Heineken beer in cans change if the price of bottled beer P5 is increased by 1%? Explain using the estimation results from part (i). {1) (1 point) Estimate this equation: Q3 = be + blTime + a, where Time is the week number, and write down the estimated function. (in) (2 points) What does the magnitude of the coefcient in indicate? What is the absolute change in the total unit sales per 10 weeks? (n) (1 point) Now estimate this equation: In QC = b0 +b1Time + u. Write down the estimated function. (0) (2 points) Calculate the percentage sales growth rate 9 per 10I weeks. Q 338 5215 361 6623 382 6859 406 7948 308 4560 324 5081 311 5383 311 4410 301 4294 296 3913 321 6116 550 25411 461 18043 283 3351 377 7038 360 5719 314 4248 314 5036 310 4278 334 5175 306 4343 305 4675 293 3985 527 16359527 16359 559 27389 319 5875 375 7021 342 7123 408 10989 357 6626 317 4389 330 5530 288 3586 315 4721 291 4685 487 19869 533 22663 320 4700 297 3723 333 6745 359 7876 329 5181 308 4838 323 6014 276 3424 308 4634 293 3523 428 12484(a) (2 points) Estimate the linear demand function of this form: Qc=0+161g+ua (1) where n denotes the error term. Please copy and paste your regression re- sults from your Excel le and write down the estimated coeicients and the estimated demand function. Do not submit your Excel le for this question- (b) (1 point) Evaluate the regression coefcients statistically (i.e., which esti- mated coefficients are statistically signicant at the 5% level?) (c) (1 point) What does the sign of the estimated coefcient ,6] indicate? What does its magnitude indicate? (d) (3 points) Calculate own-price elasticity of demand at Pc = $15-00 and Pc = $30.00. How do the elasticity values differ and why? (6) (5 points) Based on the elasticity estimates, predict how the total revenue will change if PC is increased above $15.00 and explain why. How will the prot change? What if F; is dropped below $30.00? How will the total revenue and prot change? Is the optimal price below or above $15.00? Is it below or above $30.00? Please provide your answers and reasoning. (f) (1 point) Now consider the following demand function: Q. = r35" x Pf'. (2) Write down this function in a log-linear form. (g) (2 points) Now transform the data into logs and estimate the log-linear func- tion. Please copy and paste your regression results from your Excel le. Using the estimated coefficients, write down the estimated demand function as it The file Comm172 Assignment1 Data_2021. x1sx contains store sales data for Heineken beer. The data for this question are in the Question 2 sheet. The respective vari- ables are: . Qc - the total unit sales of Heineken beer (six-packs, in cans, 72oz) across a large number of U.S. stores . Pc - the price per litre of Heineken beer in cans . Po - the price per litre of Heineken beer in glass bottles 3 . A - the total cost of advertising in the U.S. (in $1,000) The data cover 52 weeks from January 1, 2001 to December 24, 2001. You seek to understand the demand for a six-pack Heineken beer in cans. You decide to identify the underlying factors that explain the sales and measure the relative importance of these factors.lulu \"10mm muluuuu, "11W uuwn uuv wumlm \"mlII... lulluuluu 1-.) ul appears in (2). (h) (2 points) What does the coefcient ,61 measure? What does the magnitude of the estimated coefcient {31 indicate? (i) (1 point) You realized that the demand function (2) could be misspecied, since it omits other variables. Add the log of Pb and the log of A into the regression equation estimated in part (g) and reestimate the equation. Please copy and paste your regression results from your Excel le. (j) (0.5 points) Which model ts the data better, the one in part (g) or in part (1)? Hint: look at the adjusted R2. (k) (2.5 points) Are the two products (canned and bottled beer) complements or substitutes? How will the demand for a six-pack Heineken beer in cans change if the price of bottled beer P5 is increased by 1%? Explain using the