Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a seven-state area: Illinois, Indiana, Michigan, Minnesota, Mississippi, Ohio, and Wisconsin. The company’s marketing department has collected data from its distributors in each state. This data consists of the quantity and price (per case) of microbrews sold in each state, as well as the average income (in thousands of dollars) of consumers living in various regions of each state. The data for each state are available via the link below--please note there are multiple tabs at the bottom of the spreadsheet, each refers to one of the seven states selling the Kalamazoo Brewing Company’s microbrews. Excel Data File Assuming that the underlying demand relation is a linear function of price and income, use your spreadsheet program to obtain least squares estimates of Wisconsin’s demand for KBC microbrews. Instruction: If the estimate is negative, enter a negative number (-) in the equation. Enter your responses rounded to two decimal places. Q = + Price + Income Quantity Price Income 575 31.26 33.95 674 30.69 35.51 616 31.54 28.78 183 27.41 30.44 501 29.75 31.28 578 29.48 33.77 590 28.94 38.31 445 28.17 34.01 603 28.58 32.53 713 28.57 31.69 337 30.06 32.26 230 29.36 31.57 403 28.81 32.75 383 32.52 29.48 568 32.02 35.91 698 32.91 34.85 826 28.45 34.06 789 26.85 38.92 645 30.49 35.94 601 31.72 38.05 467 31.23 36.48 429 31.28 37.61

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 6MC

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Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a seven-state area: Illinois, Indiana, Michigan, Minnesota, Mississippi, Ohio, and Wisconsin. The company’s marketing department has collected data from its distributors in each state. This data consists of the quantity and price (per case) of microbrews sold in each state, as well as the average income (in thousands of dollars) of consumers living in various regions of each state. The data for each state are available via the link below--please note there are multiple tabs at the bottom of the spreadsheet, each refers to one of the seven states selling the Kalamazoo Brewing Company’s microbrews.

Excel Data File

Assuming that the underlying demand relation is a linear function of price and income, use your spreadsheet program to obtain least squares estimates of Wisconsin’s demand for KBC microbrews.

Instruction: If the estimate is negative, enter a negative number (-) in the equation. Enter your responses rounded to two decimal places.

Q = + Price + Income

Quantity	Price	Income
575	31.26	33.95
674	30.69	35.51
616	31.54	28.78
183	27.41	30.44
501	29.75	31.28
578	29.48	33.77
590	28.94	38.31
445	28.17	34.01
603	28.58	32.53
713	28.57	31.69
337	30.06	32.26
230	29.36	31.57
403	28.81	32.75
383	32.52	29.48
568	32.02	35.91
698	32.91	34.85
826	28.45	34.06
789	26.85	38.92
645	30.49	35.94
601	31.72	38.05
467	31.23	36.48
429	31.28	37.61
552	28.89	38.29
553	31.13	36.9
562	27.52	39.22
352	30.02	34.21
611	31.38	33.97
346	29.08	38.53
354	28.8	34.4
401	27.64	34.01
253	30.47	34.24
524	30.97	38.29
211	32.85	34.66
666	30.11	41.38
468	29.48	32.14
585	28.41	29.16
578	29.96	35.05
656	30.46	37.11
571	32.86	32.94
454	28.49	32.7
510	30.67	33.14
672	31.92	33.73
499	28.44	41.92
560	27.94	35.06
848	29.74	32.71
617	29.54	37.96
530	31.34	37.38
649	30.08	35.55
824	29.13	42.89
626	31.72	37.17

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