Case Study

Use 12-point Times New Roman font. Do not exceed 4 pages in length. The bulk of your grade will be based on your ability to perform the requested analyses and provide an accurate interpretation. Copy and paste only your output for each regression, not the data or residuals. Submit either word (doc) or pdf. No other formats is accepted.
Please find the attached Excel file

Demand can be estimated with experimental data, time-series data, or cross-section data. In this case, cross-section data appear in the Excel file. Soft drink consumption in cans per capita per year is related to six-pack price, income per capita, and mean temperature across the 48 contiguous states in the United States.

Questions

1. Given the data, please construct a multiple linear regression program by MS Excel. (20%)
2. Interpret each coefficient of independent variable in the soft drink demand estimated function in question 1. (20%)
3. Given your answer in question 1, please comment on whether the regression estimated function is a good fit or not. What is the interpretation of coefficient of determination (R-square) ? May we use the estimated function to predict for the future demand ? Explain why. (20%)
4. Howmanycans/capita/yearonsoftdrinkshouldbeforastateinwhich6-packprice=$1.95,Income/Capita=$23,500, and Mean Temp= 68 F ? (20%)
5. Now omit the price and temperature from the regression equation. Should a marketing plan for soft drinks be designed that relocates most canned drink machines into low-income neighborhoods ? Why or why not ? (20%)