DATA SET 1
Soft Drink Demand Estimation
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 carefully monitored. Demand forecasts usually rely on time series data. In contrast, cross-section data appear in Table 1. Soft drink consumption in cans per year is related to six pack price, income per capita, and mean temperature across the 48 contiguous sates in the United States Question

1. Estimate the demand for soft drinks using a multiple regression program available on your computer. 2. Interpret the coefficients and calculate the price elasticity of soft drink demand 3. Omit price from the regression equation and observe the bias introduced into the parameter estimate for income. 4. Now omit both price and temperature from the regression equation. Should a marketing plan for soft drinks be designed that relocates most canned drink machines into low income neighborhoods? Why or Why not? DATA SET 2

The data are the results of the following market research experiment by a large company. The company’s total market area was divided into 40 equally populated market areas, and the price to be charged for the product was set to be the same in each area. Then, the weekly amount of advertising expenditure ($) in each of these market areas was set as indicated in column B. The weekly sales (y units) in each market area was then recorded as shown in column C. 1. Use linear regression to estimate a linear equation describing how the value of sales (y) varies with the level of the fitted equation. 2. Assess the validity of the fitted equation.

3. If the product sells at a price of $100 and costs $70 per unit to produce, estimate a linear equation for the company’s weekly profit in terms of its advertising expenditure (x).

...Have a Drink!
Beer is the Irish drink of choice, and they brew it very well. But don’t overindulge, or the bar patrons might think you’re “fluthered.” That’s when you can’t keep your butt on your bar stool.
Want a pint of great beer? Don’t ask for a glass. Tell the bartender you’re in the market for a pint of “plain.” That’s the local Guinness beer of which the Irish are so fond.
If you’d rather have a shot of vodka, try asking for a “naggin.” That’s how the...

...Group Assignment 1 – SoftDrink Case Study
Economics 3315: Managerial Economics
Case 1: SoftDrink Case Study
A study on softdrink consumption across the 48 contiguous states in the United States was conducted. The attached dataset describes the consumption across the US. There are 48 elements which are the states and 4 variables which are Cans/Capita/Yr, 6-Pck Price, Income/Capita, and Mean Temp....

...REPORT ON
OLIGOPOLY MARKET OF
SOFT-DRINK INDUSTRY
Submitted by:
Priyanka
(Student)
Jaipuria Institute Of Management, Lucknow
THE EXISTING DUOPOLY
OLIGOPOLY
Oligopoly is...

...sell Coke through interactive vending machines. Over the last three years, the soft-drinking giants have watched their earnings erode as they waged a price war in supermarkets. Vending machines have remained largely untouched by the discounting. Sales of softdrinks from vending machines have risen steadily over the last few years, though most sales still take place in supermarkets. Last year, about 11.9 percent of...

...Squirt - Nature of industry, market, and buyer behavior
In the United States, people consume more carbonated drinks than tap water. Research has shown that the average American drinks about 53 gallons of softdrinks
per year. However, softdrink consumption has declined over the past few years (Kerin & Peterson, 2004).
The softdrink industry has three major participants in the...

...and another variable or a series of variables. (Demand is based on the policy, e.g. cement, and build material.
Causal Model:
Demand for next period
= f (number of permits, number of loan application....)
There is no logical link between the demand in the future and what has happened in the past. There are other factors which can be logically linked to the demand.
Example 1: There is a strong cause and effect relationship between...

...determinants of supply:
Price (P), Numbers of Producers (NP), Taxes (T)
Model Specification
Specification of model is to specify the form of equation, or regression relation that indicates the relationship between the independent variables and the dependent variables. Normally the specific functional form of the regression relation to be estimated is chosen to depict the true supply relationships as closely possible.
The table...