Evaluate the estimated demand model.

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KVdatasetforproject.xlsx
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Raw Data

Year Pork Consumption
dpc: Pounds per Capita		 Price Pork
dpc: $/pound		 Price Beef
dpc: $/pound		 Income
dpc: Average Household in $1000s
1985 57 1.48 2.34 21
1986 54 1.61 2.35 23
1987 49 1.86 2.38 24
1988 51 1.80 2.34 25
1989 51 1.71 2.35 27
1990 51 1.71 2.29 29
1991 49 1.89 2.27 31
1992 49 1.99 2.38 32
1993 52 1.94 2.50 34
1994 52 1.93 2.66 37
1995 49 2.25 2.81 37
1996 50 2.24 2.88 38
1997 52 2.09 2.85 39
1998 52 2.09 2.93 41
1999 52 2.10 2.83 43
2000 51 2.06 2.84 45
2001 48 2.34 2.80 47
2002 48 2.45 2.80 50
2003 51 2.43 2.77 52
2004 53 2.41 2.88 55
2005 51 2.58 3.06 57
2006 50 2.69 3.38 58
2007 51 2.66 3.32 58
2008 52 2.66 3.75 59
2009 51 2.79 4.07 60
2010 50 2.83 4.09 63
2011 49 2.81 3.97 67
2012 50 2.87 4.16 68
2013 49 2.94 4.33 68
2014 50 2.92 4.26 68
2015 47 3.11 4.38 67
2016 45 3.43 4.81 70
2017 45 3.47 4.99 71

Results

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.8351852186
R Square 0.6975343494
Adjusted R Square 0.6662447993
Standard Error 1.3522944836
Observations 33
ANOVA
df SS MS F Significance F
Regression 3 122.3010225904 40.7670075301 22.2928852583 0.0000001101
Residual 29 53.032310743 1.8287003704
Total 32 175.3333333333
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 63.6339718057 1.7007732702 37.414729476 4.25179713655048E-26 60.1554998989 67.1124437126 60.1554998989 67.1124437126
Price Pork -13.0145529376 2.1390789273 -6.0841854743 0.0000012646 -17.3894605665 -8.6396453087 -17.3894605665 -8.6396453087
Price Beef 1.9584167911 0.9391588581 2.0852881004 0.0459535721 0.0376212559 3.8792123262 0.0376212559 3.8792123262
Income 0.2383343024 0.0541160612 4.4041324734 0.0001322942 0.1276545299 0.3490140748 0.1276545299 0.3490140748
Q=63.63-13.01Pp+1.95Pb+.24M
where Pp = Price of Pork
Pb = Price of Beef
M = Income

elasticities

Year Pork Consumption
dpc: Pounds per Capita		 Price Pork
dpc: $/pound		 Price Beef
dpc: $/pound		 Income
dpc: Average Household in $1000s
1997 52 2.09 2.85 39
2017 45 3.47 4.99 71
price elasticity Q2017-Q1997 X P AVG -7 X 2.78 = -19.46 = -0.2907515315 inelastic
of demand P2017-P1997 Q AVG 1.38 48.5 66.93
income elasticity Q2017-Q1997 X M AVG -7 X 55 = -385 = -0.2480670103 inferior
of demand M2017-M1997 Q AVG 32.00 48.5 1552
Cross price elasticity Qp2017-Qp1997 X P AVG Beef -7 X 3.92 = -27.44 = -0.2643799981 complimentary
of demand Pb2017-Pb1997 Q AVG Pork 2.14 48.5 103.79