With milk sales sagging of late, The Milk Processor Education Program (MPEP) decided to move on from the famous "Got Milk" ad slogan in favor of a new one, "Milk Life." The new tagline emphasizes milk's nutritional benefits, including its protein content. MPEP began collecting data on the number of gallons of milk households consumed weekly (in millions), weekly price per gallon, and weekly expenditures on milk advertising (in hundreds of dollars) for the period following the launch of the new campaign. These data are available via the link below. Use these data to estimate a linear regression. Linear Model Log-Linear Model Q P A lnQ lnP lnA 4.76 2.46 472.68 1.56 0.90 6.16 0.90 4.28 326.41 -0.10 1.45 5.79 1.74 3.72 357.36 0.55 1.31 5.88 0.96 4.20 475.82 -0.04 1.43 6.17 2.38 4.14 494.25 0.87 1.42 6.20 1.28 4.59 458.62 0.25 1.52 6.13 2.86 3.30 421.67 1.05 1.19 6.04 1.87 4.34 534.85 0.63 1.47 6.28 2.19 3.31 524.75 0.78 1.20 6.26 1.38 3.35 370.35 0.32 1.21 5.91 0.21 4.53 420.16 -1.54 1.51 6.04 3.55 2.63 333.79 1.27 0.97 5.81 2.44 4.40 437.32 0.89 1.48 6.08 1.94 4.36 442.70 0.66 1.47 6.09 2.50 3.24 375.67 0.91 1.18 5.93 2.92 3.45 546.36 1.07 1.24 6.30 4.94 2.97 391.17 1.60 1.09 5.97 2.14 3.22 498.00 0.76 1.17 6.21 3.89 3.34 530.17 1.36 1.20 6.27 6.91 2.24 527.36 1.93 0.81 6.27 3.41 4.04 440.93 1.23 1.40 6.09 1.16 4.10 480.35 0.15 1.41 6.17 1.60 3.99 404.91 0.47 1.38 6.00 4.09 3.22 512.00 1.41 1.17 6.24 2.69 2.98 346.29 0.99 1.09 5.85 2.41 4.30 383.47 0.88 1.46 5.95 2.25 2.84 434.26 0.81 1.04 6.07 2.48 3.96 548.37 0.91 1.38 6.31 3.79 2.49 357.71 1.33 0.91 5.88 3.33 3.29 445.73 1.20 1.19 6.10 2.61 4.02 524.55 0.96 1.39 6.26 2.40 4.05 487.87 0.88 1.40 6.19 3.92 2.46 343.13 1.37 0.90 5.84 3.42 3.45 353.81 1.23 1.24 5.87 0.80 3.40 334.47 -0.23 1.22 5.81 5.79 2.95 330.57 1.76 1.08 5.80 3.58 2.69 363.91 1.28 0.99 5.90 1.58 3.79 383.71 0.46 1.33 5.95 1.14 3.37 430.37 0.13 1.21 6.06 1.04 4.64 501.84 0.04 1.54 6.22 4.88 2.66 447.12 1.59 0.98 6.10 4.31 2.25 404.38 1.46 0.81 6.00 2.23 3.94 449.29 0.80 1.37 6.11 1.38 4.42 327.99 0.32 1.49 5.79 1.62 3.13 332.39 0.49 1.14 5.81 1.38 4.45 450.16 0.33 1.49 6.11 6.20 2.38 467.40 1.82 0.87 6.15 4.17 3.69 528.60 1.43 1.31 6.27 4.08 4.02 533.73 1.41 1.39 6.28 0.08 4.30 355.81 -2.55 1.46 5.87 3.82 2.80 462.42 1.34 1.03 6.14 1.17 4.51 549.78 0.16 1.51 6.31 3.26 2.42 366.63 1.18 0.88 5.90 2.44 4.37 429.74 0.89 1.47 6.06 4.16 2.53 399.57 1.42 0.93 5.99 2.63 3.63 521.95 0.97 1.29 6.26 4.94 2.80 356.59 1.60 1.03 5.88 1.84 4.36 416.24 0.61 1.47 6.03 4.71 3.12 435.99 1.55 1.14 6.08 6.46 2.40 464.62 1.87 0.87 6.14 2.79 3.51 353.37 1.03 1.25 5.87 4.09 3.07 425.12 1.41 1.12 6.05 4.76 2.32 481.72 1.56 0.84 6.18 3.05 3.45 376.30 1.12 1.24 5.93 0.87 4.44 536.86 -0.13 1.49 6.29 3.12 2.50 493.52 1.14 0.92 6.20 1.34 3.11 454.69 0.29 1.13 6.12 1.93 3.24 487.07 0.66 1.17 6.19 1.64 2.87 461.69 0.50 1.05 6.13 4.39 2.97 410.84 1.48 1.09 6.02 5.76 2.33 480.66 1.75 0.84 6.18 4.40 2.82 381.62 1.48 1.04 5.94 6.22 3.14 456.97 1.83 1.14 6.12 1.10 3.89 461.39 0.09 1.36 6.13 4.12 2.67 430.43 1.42 0.98 6.06 5.40 2.73 438.53 1.69 1.01 6.08 2.75 4.52 336.00 1.01 1.51 5.82 5.12 2.28 519.90 1.63 0.83 6.25 3.94 3.25 536.25 1.37 1.18 6.28 5.69 2.18 439.75 1.74 0.78 6.09 0.44 4.27 352.57 -0.82 1.45 5.87 1.89 3.62 397.69 0.64 1.29 5.99 4.02 3.32 345.17 1.39 1.20 5.84 3.70 3.43 507.56 1.31 1.23 6.23 3.26 2.43 330.67 1.18 0.89 5.80 2.98 2.97 433.20 1.09 1.09 6.07 2.09 4.32 462.14 0.74 1.46 6.14 5.68 2.25 515.33 1.74 0.81 6.24 4.33 2.65 508.14 1.47 0.98 6.23 4.97 3.63 510.41 1.60 1.29 6.24 2.89 3.60 343.16 1.06 1.28 5.84 2.25 3.37 365.82 0.81 1.22 5.90 0.17 3.77 425.56 -1.79 1.33 6.05 3.96 2.87 347.36 1.38 1.06 5.85 4.08 2.97 326.06 1.40 1.09 5.79 3.49 3.94 527.12 1.25 1.37 6.27 4.21 4.10 475.28 1.44 1.41 6.16 2.25 4.09 475.69 0.81 1.41 6.16 2.40 3.93 536.42 0.88 1.37 6.28 1.61 4.10 325.89 0.48 1.41 5.79 Suppose that the weekly price of milk is $3.40 per gallon and MPEP decides to ramp up weekly advertising by 35 percent to $150 (in hundreds). Use your regression model to estimate the weekly quantity of milk consumed after this advertising increase. _____ million gallons per week

With milk sales sagging of late, The Milk Processor Education Program (MPEP) decided to move on from the famous "Got Milk" ad slogan in favor of a new one, "Milk Life." The new tagline emphasizes milk's nutritional benefits, including its protein content. MPEP began collecting data on the number of gallons of milk households consumed weekly (in millions), weekly price per gallon, and weekly expenditures on milk advertising (in hundreds of dollars) for the period following the launch of the new campaign. These data are available via the link below. Use these data to estimate a linear regression. Linear Model Log-Linear Model Q P A lnQ lnP lnA 4.76 2.46 472.68 1.56 0.90 6.16 0.90 4.28 326.41 -0.10 1.45 5.79 1.74 3.72 357.36 0.55 1.31 5.88 0.96 4.20 475.82 -0.04 1.43 6.17 2.38 4.14 494.25 0.87 1.42 6.20 1.28 4.59 458.62 0.25 1.52 6.13 2.86 3.30 421.67 1.05 1.19 6.04 1.87 4.34 534.85 0.63 1.47 6.28 2.19 3.31 524.75 0.78 1.20 6.26 1.38 3.35 370.35 0.32 1.21 5.91 0.21 4.53 420.16 -1.54 1.51 6.04 3.55 2.63 333.79 1.27 0.97 5.81 2.44 4.40 437.32 0.89 1.48 6.08 1.94 4.36 442.70 0.66 1.47 6.09 2.50 3.24 375.67 0.91 1.18 5.93 2.92 3.45 546.36 1.07 1.24 6.30 4.94 2.97 391.17 1.60 1.09 5.97 2.14 3.22 498.00 0.76 1.17 6.21 3.89 3.34 530.17 1.36 1.20 6.27 6.91 2.24 527.36 1.93 0.81 6.27 3.41 4.04 440.93 1.23 1.40 6.09 1.16 4.10 480.35 0.15 1.41 6.17 1.60 3.99 404.91 0.47 1.38 6.00 4.09 3.22 512.00 1.41 1.17 6.24 2.69 2.98 346.29 0.99 1.09 5.85 2.41 4.30 383.47 0.88 1.46 5.95 2.25 2.84 434.26 0.81 1.04 6.07 2.48 3.96 548.37 0.91 1.38 6.31 3.79 2.49 357.71 1.33 0.91 5.88 3.33 3.29 445.73 1.20 1.19 6.10 2.61 4.02 524.55 0.96 1.39 6.26 2.40 4.05 487.87 0.88 1.40 6.19 3.92 2.46 343.13 1.37 0.90 5.84 3.42 3.45 353.81 1.23 1.24 5.87 0.80 3.40 334.47 -0.23 1.22 5.81 5.79 2.95 330.57 1.76 1.08 5.80 3.58 2.69 363.91 1.28 0.99 5.90 1.58 3.79 383.71 0.46 1.33 5.95 1.14 3.37 430.37 0.13 1.21 6.06 1.04 4.64 501.84 0.04 1.54 6.22 4.88 2.66 447.12 1.59 0.98 6.10 4.31 2.25 404.38 1.46 0.81 6.00 2.23 3.94 449.29 0.80 1.37 6.11 1.38 4.42 327.99 0.32 1.49 5.79 1.62 3.13 332.39 0.49 1.14 5.81 1.38 4.45 450.16 0.33 1.49 6.11 6.20 2.38 467.40 1.82 0.87 6.15 4.17 3.69 528.60 1.43 1.31 6.27 4.08 4.02 533.73 1.41 1.39 6.28 0.08 4.30 355.81 -2.55 1.46 5.87 3.82 2.80 462.42 1.34 1.03 6.14 1.17 4.51 549.78 0.16 1.51 6.31 3.26 2.42 366.63 1.18 0.88 5.90 2.44 4.37 429.74 0.89 1.47 6.06 4.16 2.53 399.57 1.42 0.93 5.99 2.63 3.63 521.95 0.97 1.29 6.26 4.94 2.80 356.59 1.60 1.03 5.88 1.84 4.36 416.24 0.61 1.47 6.03 4.71 3.12 435.99 1.55 1.14 6.08 6.46 2.40 464.62 1.87 0.87 6.14 2.79 3.51 353.37 1.03 1.25 5.87 4.09 3.07 425.12 1.41 1.12 6.05 4.76 2.32 481.72 1.56 0.84 6.18 3.05 3.45 376.30 1.12 1.24 5.93 0.87 4.44 536.86 -0.13 1.49 6.29 3.12 2.50 493.52 1.14 0.92 6.20 1.34 3.11 454.69 0.29 1.13 6.12 1.93 3.24 487.07 0.66 1.17 6.19 1.64 2.87 461.69 0.50 1.05 6.13 4.39 2.97 410.84 1.48 1.09 6.02 5.76 2.33 480.66 1.75 0.84 6.18 4.40 2.82 381.62 1.48 1.04 5.94 6.22 3.14 456.97 1.83 1.14 6.12 1.10 3.89 461.39 0.09 1.36 6.13 4.12 2.67 430.43 1.42 0.98 6.06 5.40 2.73 438.53 1.69 1.01 6.08 2.75 4.52 336.00 1.01 1.51 5.82 5.12 2.28 519.90 1.63 0.83 6.25 3.94 3.25 536.25 1.37 1.18 6.28 5.69 2.18 439.75 1.74 0.78 6.09 0.44 4.27 352.57 -0.82 1.45 5.87 1.89 3.62 397.69 0.64 1.29 5.99 4.02 3.32 345.17 1.39 1.20 5.84 3.70 3.43 507.56 1.31 1.23 6.23 3.26 2.43 330.67 1.18 0.89 5.80 2.98 2.97 433.20 1.09 1.09 6.07 2.09 4.32 462.14 0.74 1.46 6.14 5.68 2.25 515.33 1.74 0.81 6.24 4.33 2.65 508.14 1.47 0.98 6.23 4.97 3.63 510.41 1.60 1.29 6.24 2.89 3.60 343.16 1.06 1.28 5.84 2.25 3.37 365.82 0.81 1.22 5.90 0.17 3.77 425.56 -1.79 1.33 6.05 3.96 2.87 347.36 1.38 1.06 5.85 4.08 2.97 326.06 1.40 1.09 5.79 3.49 3.94 527.12 1.25 1.37 6.27 4.21 4.10 475.28 1.44 1.41 6.16 2.25 4.09 475.69 0.81 1.41 6.16 2.40 3.93 536.42 0.88 1.37 6.28 1.61 4.10 325.89 0.48 1.41 5.79 Suppose that the weekly price of milk is $3.40 per gallon and MPEP decides to ramp up weekly advertising by 35 percent to $150 (in hundreds). Use your regression model to estimate the weekly quantity of milk consumed after this advertising increase. _____ million gallons per week

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 1.2CE: Interpret the coefficients and calculate the price elasticity of soft drink demand.

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Related questions

Question

Linear Model		Log-Linear Model
Q	P	A	lnQ	lnP	lnA
4.76	2.46	472.68	1.56	0.90	6.16
0.90	4.28	326.41	-0.10	1.45	5.79
1.74	3.72	357.36	0.55	1.31	5.88
0.96	4.20	475.82	-0.04	1.43	6.17
2.38	4.14	494.25	0.87	1.42	6.20
1.28	4.59	458.62	0.25	1.52	6.13
2.86	3.30	421.67	1.05	1.19	6.04
1.87	4.34	534.85	0.63	1.47	6.28
2.19	3.31	524.75	0.78	1.20	6.26
1.38	3.35	370.35	0.32	1.21	5.91
0.21	4.53	420.16	-1.54	1.51	6.04
3.55	2.63	333.79	1.27	0.97	5.81
2.44	4.40	437.32	0.89	1.48	6.08
1.94	4.36	442.70	0.66	1.47	6.09
2.50	3.24	375.67	0.91	1.18	5.93
2.92	3.45	546.36	1.07	1.24	6.30
4.94	2.97	391.17	1.60	1.09	5.97
2.14	3.22	498.00	0.76	1.17	6.21
3.89	3.34	530.17	1.36	1.20	6.27
6.91	2.24	527.36	1.93	0.81	6.27
3.41	4.04	440.93	1.23	1.40	6.09
1.16	4.10	480.35	0.15	1.41	6.17
1.60	3.99	404.91	0.47	1.38	6.00
4.09	3.22	512.00	1.41	1.17	6.24
2.69	2.98	346.29	0.99	1.09	5.85
2.41	4.30	383.47	0.88	1.46	5.95
2.25	2.84	434.26	0.81	1.04	6.07
2.48	3.96	548.37	0.91	1.38	6.31
3.79	2.49	357.71	1.33	0.91	5.88
3.33	3.29	445.73	1.20	1.19	6.10
2.61	4.02	524.55	0.96	1.39	6.26
2.40	4.05	487.87	0.88	1.40	6.19
3.92	2.46	343.13	1.37	0.90	5.84
3.42	3.45	353.81	1.23	1.24	5.87
0.80	3.40	334.47	-0.23	1.22	5.81
5.79	2.95	330.57	1.76	1.08	5.80
3.58	2.69	363.91	1.28	0.99	5.90
1.58	3.79	383.71	0.46	1.33	5.95
1.14	3.37	430.37	0.13	1.21	6.06
1.04	4.64	501.84	0.04	1.54	6.22
4.88	2.66	447.12	1.59	0.98	6.10
4.31	2.25	404.38	1.46	0.81	6.00
2.23	3.94	449.29	0.80	1.37	6.11
1.38	4.42	327.99	0.32	1.49	5.79
1.62	3.13	332.39	0.49	1.14	5.81
1.38	4.45	450.16	0.33	1.49	6.11
6.20	2.38	467.40	1.82	0.87	6.15
4.17	3.69	528.60	1.43	1.31	6.27
4.08	4.02	533.73	1.41	1.39	6.28
0.08	4.30	355.81	-2.55	1.46	5.87
3.82	2.80	462.42	1.34	1.03	6.14
1.17	4.51	549.78	0.16	1.51	6.31
3.26	2.42	366.63	1.18	0.88	5.90
2.44	4.37	429.74	0.89	1.47	6.06
4.16	2.53	399.57	1.42	0.93	5.99
2.63	3.63	521.95	0.97	1.29	6.26
4.94	2.80	356.59	1.60	1.03	5.88
1.84	4.36	416.24	0.61	1.47	6.03
4.71	3.12	435.99	1.55	1.14	6.08
6.46	2.40	464.62	1.87	0.87	6.14
2.79	3.51	353.37	1.03	1.25	5.87
4.09	3.07	425.12	1.41	1.12	6.05
4.76	2.32	481.72	1.56	0.84	6.18
3.05	3.45	376.30	1.12	1.24	5.93
0.87	4.44	536.86	-0.13	1.49	6.29
3.12	2.50	493.52	1.14	0.92	6.20
1.34	3.11	454.69	0.29	1.13	6.12
1.93	3.24	487.07	0.66	1.17	6.19
1.64	2.87	461.69	0.50	1.05	6.13
4.39	2.97	410.84	1.48	1.09	6.02
5.76	2.33	480.66	1.75	0.84	6.18
4.40	2.82	381.62	1.48	1.04	5.94
6.22	3.14	456.97	1.83	1.14	6.12
1.10	3.89	461.39	0.09	1.36	6.13
4.12	2.67	430.43	1.42	0.98	6.06
5.40	2.73	438.53	1.69	1.01	6.08
2.75	4.52	336.00	1.01	1.51	5.82
5.12	2.28	519.90	1.63	0.83	6.25
3.94	3.25	536.25	1.37	1.18	6.28
5.69	2.18	439.75	1.74	0.78	6.09
0.44	4.27	352.57	-0.82	1.45	5.87
1.89	3.62	397.69	0.64	1.29	5.99
4.02	3.32	345.17	1.39	1.20	5.84
3.70	3.43	507.56	1.31	1.23	6.23
3.26	2.43	330.67	1.18	0.89	5.80
2.98	2.97	433.20	1.09	1.09	6.07
2.09	4.32	462.14	0.74	1.46	6.14
5.68	2.25	515.33	1.74	0.81	6.24
4.33	2.65	508.14	1.47	0.98	6.23
4.97	3.63	510.41	1.60	1.29	6.24
2.89	3.60	343.16	1.06	1.28	5.84
2.25	3.37	365.82	0.81	1.22	5.90
0.17	3.77	425.56	-1.79	1.33	6.05
3.96	2.87	347.36	1.38	1.06	5.85
4.08	2.97	326.06	1.40	1.09	5.79
3.49	3.94	527.12	1.25	1.37	6.27
4.21	4.10	475.28	1.44	1.41	6.16
2.25	4.09	475.69	0.81	1.41	6.16
2.40	3.93	536.42	0.88	1.37	6.28
1.61	4.10	325.89	0.48	1.41	5.79

Suppose that the weekly price of milk is $3.40 per gallon and MPEP decides to ramp up weekly advertising by 35 percent to $150 (in hundreds). Use your regression model to estimate the weekly quantity of milk consumed after this advertising increase.

_____ million gallons per week

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