Calculate Regression With Regression Analysis Program In Excel
Question
Consider the following data for a cross section of individuals in the population, in which:
Q = Quantity (in 100s) purchased in a year
P = Average price of aspirin in that year
M = Annual income (in $1000s)
A = Age of buyer
Calculate Regression using Regression Analysis Program in Excel
|
obs |
Q |
P |
M |
A |
|
1 |
1 |
1.5 |
20 |
25 |
|
2 |
2 |
1.5 |
40 |
20 |
|
3 |
4 |
1 |
12 |
25 |
|
4 |
2 |
1 |
10 |
30 |
|
5 |
2 |
1 |
8 |
30 |
|
6 |
3 |
2 |
30 |
35 |
|
7 |
3.5 |
1.5 |
30 |
40 |
|
8 |
4 |
2 |
20 |
40 |
|
9 |
7 |
1 |
20 |
45 |
|
10 |
1 |
3 |
15 |
40 |
|
11 |
2 |
2 |
18 |
30 |
|
12 |
3 |
2 |
20 |
32 |
|
13 |
3.5 |
2 |
15 |
36 |
|
14 |
4 |
2 |
10 |
30 |
|
15 |
2 |
3 |
25 |
20 |
|
16 |
1 |
4 |
15 |
25 |
|
17 |
8 |
2 |
15 |
55 |
|
18 |
9 |
1 |
40 |
50 |
|
19 |
1 |
4 |
10 |
45 |
|
20 |
10 |
1.5 |
30 |
55 |
|
21 |
6 |
1.5 |
35 |
60 |
|
22 |
2 |
1 |
30 |
40 |
|
23 |
3 |
1 |
25 |
40 |
|
24 |
3 |
2 |
20 |
35 |
|
25 |
3 |
2 |
15 |
35 |
|
26 |
4 |
3 |
20 |
35 |
|
27 |
1 |
4 |
20 |
25 |
|
28 |
1 |
4 |
25 |
30 |
|
29 |
2 |
5 |
28 |
30 |
|
30 |
3 |
1 |
30 |
32 |
Give the above data, estimate using the method of least squares, the demand for aspirin.
- Analyze the results of your study; what do the results suggest?
- Discuss the significance of the variables and the regression equation
- Calculate the own price and income elasticities of demand for aspirin (use the values in the problem below). What do these elasticities indicate? Is this what you would expect? Explain.
Summary
The question belongs to Statistics and it is about calculating regression using Regression Analysis Program in Excel.
Total Word Count 285