Instruction: You should prepare the case with your group members. Each group is required to submit a word file detailing your analysis. You will be graded on your group’s performance and your contribution to your group.

Summary of the case:
You work for Price Waterman Coopers as a market analyst. PWC has been hired by the owner of two Burger King restaurants located in a suburban Atlanta market area to study the demand for its basic hamburger meal package–referred to as “Combination 1" on its menus. The two restaurants face competition in the Atlanta suburb from five other hamburger restaurants (three MacDonald’s and two Wendy’s restaurants) and three other restaurants serving “drive-through” fast food (a Taco Bell, a Kentucky Fried Chicken, and a small family-owned Chinese restaurant).

The owner of the two Burger King restaurants provides PWC with the data shown in Table 1 (Table 1 is in a separate excel file). Q is the total number of Combination 1 meals sold at both locations during each week in 1998. P is the average price charged for a Combination 1 meal at the two locations. [Prices are identical at the two Burger King locations.] Every week the Burger King owner advertises special price offers at its two restaurants exclusively in daily newspaper advertisements. A is the dollar amount spent on newspaper ads for each week in 1998. The owner could not provide PWC with data on prices charged by other competing restaurants during 1998. For the one-year time period of the study, household income and population in the suburb did not change enough to warrant inclusion in the demand analysis.

a) Using the data in Table 1, specify a linear functional form for the demand for Combination 1 meals, and run a regression to estimate the demand for Combo 1 meals.

b) Using statistical software, estimate the parameters of the empirical demand function specified in part a. Write your estimated demand...

...CASE EXERCISE
SOFT DRINK DEMANDESTIMATION
PREPARED BY
GROUP
:NIK NORMIE EDAYU BT. HJ. NIK HIM
: BM 770 (evening track)
MATRIX NO. : 2011913361
SUBMITTED TO
: DR. AZLINA BT. HANIFF
Demand can be estimated with experimental data, time-series data, or cross-section
data. Sara Lee Corporation generates experimental data in test stores where the
effect of an NFL-licensed Carolina Panthers logo on Champion sweatshirt sales can be...

...TUTORIAL 1: DEMAND THEORY
1a)
The demand curve for haircuts at Terry Bernard’s Hair Design is P = 15 – 0.15Q where Q is the number of cuts per week and P is the price of a haircut. Terry is considering raising her price above the current price of RM9. Terry is unwilling to raise price of the price hike will cause revenue to fall. Should Terry raise the price of haircuts above RM9? Why or why not?
b)
Terry is trying to decide on the number of...

...an empirical demand function—both linear and nonlinear functional forms.
For price-setting firms with market power, you will learn to how to use least-squares
regression methodology to estimate a firm’s demand function.
Forecast sales and prices using time-series regression analysis.
Employ dummy variables to account for cyclical or seasonal variation in sales.
Discuss and explain several important problems that arise when using statistical
methods...

...
DemandEstimation
Seydou Diallo
Strayer University
ECO 550: Managerial Economics
Dr. Fereidoon Shahrokh
November 4, 2014
Background
I work for Snack-Eeze. We are the leading brand of low-calorie, frozen microwavable food. We estimate the following demand equation for our product using the data from 26 supermarkets around the country for the month of April.
QD = -2,000 - 100P + 15A + 25PX + 10I
(5,234) (2.29) ...

...
DemandEstimation
ECO 550: Managerial Economics and Globalization
/2015
Jason M Brown
1. Compute the elasticity for each independent variable.
When P=500 Px-600 I=$5,500 A=$10,000 and M=5,000, using the regression equation:
QD = -5,200 -4,200(500) +5.2(600) +5.2(5,500) +0.20) (10,000) +0.25(5,000) =17,650
Price Elasticity = (P/Q) (∆Q/∆P)
From the regression equation: ∆Q/∆P=-42
So price elasticity (EP) = (p/Q) (-42) (500/17650) =-1.19
Ec=20(600/17650)...

...
DemandEstimation
Dhruvang kansara
Eco 550, Assignment 1
Professor: Dr, Guerman Kornilov
January 27, 2014
1. Compute the elasticity for each independent variable. Note: Write down all of your calculations.
According to our Textbooks and given information, When P = 8000, A = 64, PX = 9000, I = 5000, we can use regression equation,
QD = 20000 - 10*8000 + 1500*64 + 5*9000 + 10*5000 = 131,000
Price elasticity =...

...Assignment
DemandEstimation
04-Dec-12
Liaqat Group
Submitted To:
Prof. Babar Hussain
What Is DemandEstimation?
When running a small business, it is important to have an idea of what you should expect in the way of sales. To estimate how many sales a company will make, demandestimation is a process that is commonly used. With demand...

...
DemandEstimationDemand Curve Estimation
■ Simple Linear Demand Curves
■ The best estimation method balances marginal costs and marginal benefits.
■ Simple linear relations are useful for demandestimation.
■ Using Simple Linear Demand Curves
■ Straight-line relations give useful approximations.
Identification Problem
■...

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