Exhibit 16-7

question 62

Essay

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.For the estimated log-log model,interpret the estimated coefficient of ln(PepsiPrice).

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