Someone said that they believe the soft drink demand schedule in our textbook is incorrectly specified. A key variable that is missing is whether the state is in the South. Everyone knows that the Southern States will have higher soft drink demand because the heat will increase demand for soft drinks. Assess this statement by including a dummy variable for a Southern (South) State.

Provided excel data:

The states designated as Southern are

State

Alabama

Arizona

Arkansas

Florida

Georgia

Kentucky

Louisiana

Mississippi

New Mexico

North Carolina

South Carolina

Tennessee

Texas

Virginia

Refer to your Excel Regression output for Equation (1) Cans = + 1*Price + 2*Income + 3*Temp + 4*South. What is the estimated coefficient for South?

	A.	12.42.
	B.	32.31.
	C.	68.47.
	D.	84.63.

Please show all work

66 62 63 56 52 50 52 Cans Price Income Temp 200 2.19 13 150 1.99 17 237 1.93 11 135 2.59 25 121 2.29 19 118 2.49 27 217 1.99 28 242 2.29 18 295 1.89 14 85 2.39 16 114 2.35 24 184 2.19 20 104 2.21 16 143 2.17 17 230 2.05 13 269 1.97 15 111 2.19 16 217 2.11 21 72 64 LNQ LNP LNINC LNTEMP 5.298317 0.783902 2.564949 4.189655 5.010635 0.688135 2.833213 4.127134 5.46806 0.65752 2.397895 4.143135 4.905275 0.951658 3.218876 4.025352 4.795791 0.828552 2.944439 3.951244 4.770685 0.912283 3.295837 3.912023 5.379897 0.688135 3.332205 3.951244 5.488938 0.828552 2.890372 4.276666 5.686975 0.636577 2.639057 4.158883 4.442651 0.871293 2.772589 3.828641 4.736198 0.854415 3.178054 3.951244 5.214936 0.783902 2.995732 3.951244 4.644391 0.792993 2.772589 3.912023 4.962845 0.774727 2.833213 4.025352 5.438079 0.71784 2.564949 4.025352 5.594711 0.678034 2.70805 4.234107 4.70953 0.783902 2.772589 3.713572 5.379897 0.746688 3.044522 3.988984 46 52 52 State Alabama Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Idaho Illinois Indiana lowa Kansas Kentucky Louisiana Maine Maryland Massachuset ts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina 50 56 56 69 41 54 114 2.29 22 47 21 108 108 248 18 10 47 41 65 2.25 2.31 1.98 1.94 2.31 2.28 4.736198 0.828552 3.091042 3.850148 4.682131 0.81093 3.044522 3.850148 4.682131 0.837248 2.890372 3.713572 5.513429 0.683097 2.302585 4.174387 5.313206 0.662688 2.944439 4.043051 4.343805 0.837248 2.944439 3.78419 4.574711 0.824175 2.772589 3.89182 5.111988 0.783902 3.178054 3.871201 203 57 19 19 77 44 97 16 49 166 2.19 24 48 177 2.27 18 35 2.31 54 143 157 111 5.17615 0.81978 2.890372 3.555348 4.962845 0.837248 3.178054 3.988984 5.056246 0.774727 2.70805 4.025352 4.70953 0.887891 3.218876 3.871201 24 15 25 2.17 2.43 56 48 330 1.89 13 59 5.799093 0.636577 2.564949 4.077537 63 2.33 14 39 165 North Dakota Ohio Oklahoma Oregon 51 2.21 2.19 22 16 4.143135 0.845868 2.639057 3.663562 5.105945 0.792993 3.091042 3.931826 5.214936 0.783902 2.772589 4.406719 4.219508 0.81093 2.944439 3.931826 184 82 68 2.25 19 51 Pennsylvania 121 2.31 20 50 4.795791 0.837248 2.995732 3.912023 Rhode Island 138 2.23 20 50 4.927254 0.802002 2.995732 3.912023 South Carolina 237 1.93 12 65 5.46806 0.65752 2.484907 4.174387 South Dakota 95 2.34 13 45 13 60 69 50 Tennessee Texas Utah Vermont Virginia Washington 236 222 100 64 270 77 2.19 2.08 2.37 2.36 2.04 2.19 17 16 16 16 20 4.553877 0.850151 2.564949 3.806662 5.463832 0.783902 2.564949 4.094345 5.402677 0.732368 2.833213 4.234107 4.60517 0.86289 2.772589 3.912023 4.158883 0.858662 2.772589 3.78419 5.598422 0.71295 2.772589 4.060443 4.343805 0.783902 2.995732 3.89182 44 58 49 West Virginia 144 2.11 15 55 97 19 Wisconsin Wyoming 2.38 2.31 46 46 4.969813 0.746688 2.70805 4.007333 4.574711 0.8671 2.944439 3.828641 4.624973 0.837248 2.944439 3.828641 102 19