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

Question 51

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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. Using Excel's regression,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: Discuss the choice between the linear model and the log-log model. Using Excel's regression,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: 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. Using Excel's regression,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: Discuss the choice between the linear model and the log-log model. Discuss the choice between the linear model and the log-log model.

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