Demand estimation

Demand estimation - PGP I Term I Statistical...

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PGP I Term I
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Statistical approach (econometric approach) Qualitative approach (survey method) Direct market experiments
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Management of an auto lubrication service would like to know the sensitivity of demand (example from Png and Lehman). Regression analysis is conducted: Model specification Data collection Estimation Goodness of fit
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Q P
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Demand may depend on many factors along with price Dependent variable Independent variables or explanatory variables So, here we consider number of cars in the area, advertising expenditure, price of competing lube services.
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Published statistics Surveys Market experiments (present study) Three types of data Cross-section (present study) Time series Panel data 15 outlets are selected as test markets. Data were collected for one week.
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So, here we will use multiple regression analysis. We will assume price affects demand in linear fashion.
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Demand estimation - PGP I Term I Statistical...

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