It Is Believed That the Sales Volume of One-Liter Pepsi

question 50

Short Answer

It is believed that the sales volume of one-liter Pepsi bottles depends on the price of the bottle and the price of a one-liter bottle of Coca-Cola. The following data have been collected for a certain sales region. The linear model Pepsi Sales = β₀ + β₁Pepsi Price + β₂Cola Price + ε and the log-log model ln(Pepsi Sales) = β₀ + β₁ln(Pepsi Price) + β₂ln(Cola Price) + ε have been estimated as follows: Using Excel or R,what is the percentage of variations in the Pepsi Sales as explained by the log-log model?

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Definitions:

Oedipus Complex

A psychoanalytic theory by Freud, referring to a child's feelings of desire for the opposite-sex parent and jealousy towards the same-sex parent.

Phallic Complex

The phallic complex is a concept in psychoanalytic theory referring to a stage of psychosexual development where children's interest and attachment are focused on their genitalia and the differences between sexes.

Better-Than-Average Effect

A cognitive bias where individuals overestimate their own qualities and abilities relative to others.

Unrealistically Optimistic

The tendency to hold an overly positive outlook on one's abilities or future outcomes, beyond what is statistically likely or rational.