Regression analysis. | Economics homework help

Activities.docx

Activities

3. Regression analysis.

In this activity, the object is to estimate a demand function. Begin by accessing the data file ‘DataRegression.xlsx’. The data consist of quantity (‘average number of coach seats’) and price (‘average price’). Coach seats refers to the seats on a particular airline.

(a) Run a regression of ‘Average number of coach seats’ on ‘Average Price’. This gives a demand function. Use either the ‘data analysis’ package in Excel or my preference R. Provide the summary statistics. Are the estimated coefficients statistically significant?

(b) Use the demand function to predict the number of seats that would be purchased if the price were to $255 for the four quarters in year 5.

(c) Next regress price on quantity and provide the summary statistics. Are the estimated coefficients statistically significant? Do the estimated coefficients differ once the inverse demand function has been converted back to the normal specification?

(d) Now re-estimate the demand function by including in addition to the ‘average price’, the ‘average competitor price’ and the ‘average income’. Interpret each of the estimated coefficients. Are the estimated coefficients statistically significant? How do the results differ from those in (a)?

(e) Repeat the prediction in (b). Is the prediction the same? If not, why?

(f) Repeat (d) but, instead of quantity Q as the dependent variable, take the natural logarithm of the dependent variable, ln(Q), and make the dependent variable.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more