Question
Using the data on Soft Drinks in the U.S. The consumption of soft drinks in cans per capita per year across 48 selected provinces in
Using the data on Soft Drinks in the U.S. The consumption of soft drinks in cans per capita per year across 48 selected provinces in the country is linked to six-pack price, income per capita, and mean temperature (price and income are in dollar value for purpose of international comparison made in one particular study). A. Given the data, construct a multiple linear regression equation model of the U.S. demand for soft drinks. (2 points) B. Estimate the multiple linear regression model using the actual data on softdrinks. (You can use Excel to run your regression and present the results here.) (5 points) C. Given the Excel output Interpret each of the coefficients of the independent variables. (6 points) D. Are the estimated coefficients of the independent variables significant? Explain and justify your answers. (10 points) E. From a simple linear regression model of the demand (i.e., based only on price of softdrinks) to a multiple linear regression (i.e., the other factors are considered), should a marketing plan for soft drinks be designed that relocates most canned drink machines into low-income neighborhoods? Please explain your answer in the language of economics. (10 points)
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