Exhibit 16-7

question 10

Short Answer

Exhibit 16-7.It is believed that the sales volume of one liter Pepsi bottles depends on the price of the bottle and the price of one liter bottle of Coca Cola.The following data has been collected for a certain sales region. Using Excel's regression,the linear model PepsiSales = β₀ + β₁PepsiPrice + β₂ColaPrice + ε and the log-log model ln(PepsiSales)= β₀ + β₁ln(PepsiPrice)+ β₂ln(ColaPrice)+ ε have been estimated as follows: Refer to Exhibit 16.7.Using the estimated log-log model,calculate the predicted sales of Pepsi when the Pepsi price is $1.50 and the Cola price is $1.25.

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Definitions:

Mexican Americans

Americans of Mexican descent, residing in the United States, with a diverse heritage that includes indigenous, European, and African ancestry.

Sabotage

Deliberate actions aimed at damaging, disrupting, or undermining the operations, plans, or success of opponents or enemy forces.

Proclamation of Neutrality

A declaration made by President George Washington in 1793, asserting that the United States would remain neutral in the conflict between France and Great Britain.

Warring Powers

States or entities involved in a conflict, typically engaged in comprehensive military actions against one another.