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The file data2022.xls (https://www.coursehero.com/u/file/138290209/data2022xls/) comprises weekly sales data for different brands of beer for the chain store D's Super Store. The dataset consists of the
The file data2022.xls (https://www.coursehero.com/u/file/138290209/data2022xls/) comprises weekly sales data for different brands of beer for the chain store D's Super Store. The dataset consists of the following variables:
Variable | Description |
week | Week (1-52) |
coors_sales | Average weekly sales of Coors beer across stores |
oldmilwaukee_sales | Average weekly sales of Old Milwaukee beer across stores |
strohs_sales | Average weekly sales of Strohs beer across stores |
light | 1= light beer; 0 = regular |
coors_priceunit | Average weekly price of Coors beer across stores |
oldmilwaukee_priceunit | Average weekly price of Old Milwaukee beer across stores |
strohs_priceunit | Average weekly price of Strohs beer across stores |
- Estimate the following demand function: Quantity of Old Milwaukee beer sold as a function of the price of Old Milwaukee beer, the price of Strohs beer, the price of Coors beer, whether or not the beer is light or regular and, if relevant, the time trend. Interpret the coefficients you have obtained after regression. The results should be reported in a relevant table.
- Define, compute and interpret own price elasticity and cross price elasticity based on the results obtained in (a) above. If necessary, you may assume that the current values of price and quantity correspond to the values at week 52.
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