QUESTION 3b
You have been presented with the following data and asked to fit statistical demand functions:
PERIOD QUANTITY PRICE INCOME ADVERTISING
1 120 8.00 10 7
2 165 4.00 22 3
3 120 7.00 20 5
4 165 3.00 20 8
5 180 4.00 30 8
6 90 10.00 19 6
7 150 4.00 18 10.2
8 190 1.00 25 9.3
9 160 5.00 30 8
10 200 2.00 35 9.5

Linear Relationship
i. You may use any multiple regression package (e.g. SPSS) to estimate a linear relationship between the dependent variable and independent variables.
ii. Is the estimated demand function “good”? Why or why not?
iii. Discuss the economic implications of the various coefficients