Exhibit 16-7

question 65

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(ColaPrice).

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Definitions:

Janitorial Department

A dedicated team or sector within an institution tasked with the upkeep, sanitation, and general maintenance of buildings.

Square Footage

A measure of area used to determine the size of a space, typically associated with property or building dimensions.

Direct Method

An approach to calculating cash flows from operating activities that involves listing all major operating cash receipts and payments.

Cafeteria Department

A division within an organization that manages the provision of food services to employees.