mgr econ 4 - Ozark Bottled Water Products, Inc. hired a...

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Ozark Bottled Water Products, Inc. hired a marketing consulting firm to perform a test marketing of its new brand of spring water called Liquid Qzarka. The marketing experts selected 15 small and medium-sized towns in Arkansas and Missouri for a one-month- long sales test. For one month, Liquid Ozarka was sold at a variety of prices ranging from $3 per gallon to $4 per gallon. Specifically, in three of the markets, price was set by the marketing experts at $3 per gallon. In three more markets, price was set at $3.25 per gallon, and so on. For each of the 15 market areas, the marketing consultants collected data on average household income (M), the population of the marketing area (N), and the price of a rival brand of bottled water (P R ). At the end of the month, total sales of Liquid Ozarka (Q) were tabulated to provide the data provided from which the consultants estimated an empirical demand function for the new product. The data for this problem can be found under “Data for Assignment #6” on our Blackboard site. Using the marketing data from the 15 test markets, estimate th parameters for the linear
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mgr econ 4 - Ozark Bottled Water Products, Inc. hired a...

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