It is believed that the sales volume of one-liter Pepsi bottles depends on the price of the bottle and the price of a one-liter bottle of Coca-Cola. The following data have been collected for a certain sales region. The linear model Pepsi Sales = β₀ + β₁Pepsi Price + β₂Cola Price + ε and the log-log model ln(Pepsi Sales) = β₀ + β₁ln(Pepsi Price) + β₂ln(Cola Price) + ε have been estimated as follows: Using the linear model and holding Cola Price constant, what is the predicted change in the Pepsi Sales if the Pepsi Price increases by 10 cents?

Question

It is believed that the sales volume of one-liter Pepsi bottles depends on the price of the bottle and the price of a one-liter bottle of Coca-Cola. The following data have been collected for a certain sales region.

The linear model Pepsi Sales = β₀ + β₁Pepsi Price + β₂Cola Price + ε and the log-log model ln(Pepsi Sales) = β₀ + β₁ln(Pepsi Price) + β₂ln(Cola Price) + ε have been estimated as follows:

Using the linear model and holding Cola Price constant, what is the predicted change in the Pepsi Sales if the Pepsi Price increases by 10 cents?

Quizplus · Accepted Answer

The Answer of It is believed that the sales volume of one-liter Pepsi bottles depends on the price of the bottle and the price of a one-liter bottle of Coca-Cola. The following data have been collected for a certain sales region. The linear model Pepsi Sales = β₀ + β₁Pepsi Price + β₂Cola Price + ε and the log-log model ln(Pepsi Sales) = β₀ + β₁ln(Pepsi Price) + β₂ln(Cola Price) + ε have been estimated as follows: Using the linear model and holding Cola Price constant, what is the predicted change in the Pepsi Sales if the Pepsi Price increases by 10 cents?

It Is Believed That the Sales Volume of One-Liter Pepsi