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

Question 55

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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. 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 = β<sub>0</sub> + β<sub>1</sub>Pepsi Price + β<sub>2</sub>Cola Price + ε and the log-log model ln(Pepsi Sales) = β<sub>0</sub> + β<sub>1 </sub>ln(Pepsi Price) + β<sub>2 </sub>ln(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? The linear model Pepsi Sales = β0 + β1Pepsi Price + β2Cola Price + ε and the log-log model ln(Pepsi Sales) = β0 + β1 ln(Pepsi Price) + β2 ln(Cola Price) + ε have been estimated as follows: 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 = β<sub>0</sub> + β<sub>1</sub>Pepsi Price + β<sub>2</sub>Cola Price + ε and the log-log model ln(Pepsi Sales) = β<sub>0</sub> + β<sub>1 </sub>ln(Pepsi Price) + β<sub>2 </sub>ln(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? 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?

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