With milk sales sagging of late, The Milk Processor Education Program (MPEP) decided to move on...

With milk sales sagging of late, The Milk Processor Education Program (MPEP) decided to move on from the famous "Got Milk" ad slogan in favor of a new one, "Milk Life." The new tagline emphasizes milk's nutritional benefits, including its protein content. MPEP began collecting data on the number of gallons of milk households consumed weekly (in millions), weekly price per gallon, and weekly expenditures on milk advertising (in hundreds of dollars) for the period following the launch of the new campaign. These data, in forms to estimate both a linear model and log-linear model, are available via the link below. Use these data to perform two regressions: a linear regression and a log-linear regression.

Excel Data File

Which model does a better job fitting the data?

The --------------- model.

Suppose that the weekly price of milk is $3.40 per gallon and MPEP decides to ramp up weekly advertising by 35 percent to $150 (in hundreds). Use the best-fitting regression model to estimate the weekly quantity of milk consumed after this advertising increase.

Instructions: Round your intermediate calculations and enter your response rounded to three decimal places.

million gallons per week

Linear Model		Log-Linear Model
Q	P	A	lnQ	lnP	lnA
4.76	2.46	472.68	1.56	0.90	6.16
0.90	4.28	326.41	-0.10	1.45	5.79
1.74	3.72	357.36	0.55	1.31	5.88
0.96	4.20	475.82	-0.04	1.43	6.17
2.38	4.14	494.25	0.87	1.42	6.20
1.28	4.59	458.62	0.25	1.52	6.13
2.86	3.30	421.67	1.05	1.19	6.04
1.87	4.34	534.85	0.63	1.47	6.28
2.19	3.31	524.75	0.78	1.20	6.26
1.38	3.35	370.35	0.32	1.21	5.91
0.21	4.53	420.16	-1.54	1.51	6.04
3.55	2.63	333.79	1.27	0.97	5.81
2.44	4.40	437.32	0.89	1.48	6.08
1.94	4.36	442.70	0.66	1.47	6.09
2.50	3.24	375.67	0.91	1.18	5.93
2.92	3.45	546.36	1.07	1.24	6.30
4.94	2.97	391.17	1.60	1.09	5.97
2.14	3.22	498.00	0.76	1.17	6.21
3.89	3.34	530.17	1.36	1.20	6.27
6.91	2.24	527.36	1.93	0.81	6.27
3.41	4.04	440.93	1.23	1.40	6.09
1.16	4.10	480.35	0.15	1.41	6.17
1.60	3.99	404.91	0.47	1.38	6.00
4.09	3.22	512.00	1.41	1.17	6.24
2.69	2.98	346.29	0.99	1.09	5.85
2.41	4.30	383.47	0.88	1.46	5.95
2.25	2.84	434.26	0.81	1.04	6.07
2.48	3.96	548.37	0.91	1.38	6.31
3.79	2.49	357.71	1.33	0.91	5.88
3.33	3.29	445.73	1.20	1.19	6.10
2.61	4.02	524.55	0.96	1.39	6.26
2.40	4.05	487.87	0.88	1.40	6.19
3.92	2.46	343.13	1.37	0.90	5.84
3.42	3.45	353.81	1.23	1.24	5.87
0.80	3.40	334.47	-0.23	1.22	5.81
5.79	2.95	330.57	1.76	1.08	5.80
3.58	2.69	363.91	1.28	0.99	5.90
1.58	3.79	383.71	0.46	1.33	5.95
1.14	3.37	430.37	0.13	1.21	6.06
1.04	4.64	501.84	0.04	1.54	6.22
4.88	2.66	447.12	1.59	0.98	6.10
4.31	2.25	404.38	1.46	0.81	6.00
2.23	3.94	449.29	0.80	1.37	6.11
1.38	4.42	327.99	0.32	1.49	5.79
1.62	3.13	332.39	0.49	1.14	5.81
1.38	4.45	450.16	0.33	1.49	6.11
6.20	2.38	467.40	1.82	0.87	6.15
4.17	3.69	528.60	1.43	1.31	6.27
4.08	4.02	533.73	1.41	1.39	6.28
0.08	4.30	355.81	-2.55	1.46	5.87
3.82	2.80	462.42	1.34	1.03	6.14
1.17	4.51	549.78	0.16	1.51	6.31
3.26	2.42	366.63	1.18	0.88	5.90
2.44	4.37	429.74	0.89	1.47	6.06
4.16	2.53	399.57	1.42	0.93	5.99
2.63	3.63	521.95	0.97	1.29	6.26
4.94	2.80	356.59	1.60	1.03	5.88
1.84	4.36	416.24	0.61	1.47	6.03
4.71	3.12	435.99	1.55	1.14	6.08
6.46	2.40	464.62	1.87	0.87	6.14
2.79	3.51	353.37	1.03	1.25	5.87
4.09	3.07	425.12	1.41	1.12	6.05
4.76	2.32	481.72	1.56	0.84	6.18
3.05	3.45	376.30	1.12	1.24	5.93
0.87	4.44	536.86	-0.13	1.49	6.29
3.12	2.50	493.52	1.14	0.92	6.20
1.34	3.11	454.69	0.29	1.13	6.12
1.93	3.24	487.07	0.66	1.17	6.19
1.64	2.87	461.69	0.50	1.05	6.13
4.39	2.97	410.84	1.48	1.09	6.02
5.76	2.33	480.66	1.75	0.84	6.18
4.40	2.82	381.62	1.48	1.04	5.94
6.22	3.14	456.97	1.83	1.14	6.12
1.10	3.89	461.39	0.09	1.36	6.13
4.12	2.67	430.43	1.42	0.98	6.06
5.40	2.73	438.53	1.69	1.01	6.08
2.75	4.52	336.00	1.01	1.51	5.82
5.12	2.28	519.90	1.63	0.83	6.25
3.94	3.25	536.25	1.37	1.18	6.28
5.69	2.18	439.75	1.74	0.78	6.09
0.44	4.27	352.57	-0.82	1.45	5.87
1.89	3.62	397.69	0.64	1.29	5.99
4.02	3.32	345.17	1.39	1.20	5.84
3.70	3.43	507.56	1.31	1.23	6.23
3.26	2.43	330.67	1.18	0.89	5.80
2.98	2.97	433.20	1.09	1.09	6.07
2.09	4.32	462.14	0.74	1.46	6.14
5.68	2.25	515.33	1.74	0.81	6.24
4.33	2.65	508.14	1.47	0.98	6.23
4.97	3.63	510.41	1.60	1.29	6.24
2.89	3.60	343.16	1.06	1.28	5.84
2.25	3.37	365.82	0.81	1.22	5.90
0.17	3.77	425.56	-1.79	1.33	6.05
3.96	2.87	347.36	1.38	1.06	5.85
4.08	2.97	326.06	1.40	1.09	5.79
3.49	3.94	527.12	1.25	1.37	6.27
4.21	4.10	475.28	1.44	1.41	6.16
2.25	4.09	475.69	0.81	1.41	6.16
2.40	3.93	536.42	0.88	1.37	6.28
1.61	4.10	325.89	0.48	1.41	5.79

Expert Solution

SUMMARY OUTPUT for linear model

Regression Statistics
Multiple R	0.740
R Square	0.547
Adjusted R Square	0.538
Standard Error	1.063
Observations	100

ANOVA
	df	SS	MS	F	Significance F
Regression	2	132.51	66.26	58.61	0.00
Residual	97	109.66	1.13
Total	99	242.17

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	6.520	0.823	7.921	0.000	4.886	8.153	4.886	8.153
P	-1.614	0.151	-10.658	0.000	-1.915	-1.314	-1.915	-1.314
A	0.005	0.002	2.962	0.004	0.002	0.008	0.002	0.008

SUMMARY OUTPUT for log-linear model

Regression Statistics
Multiple R	0.634
R Square	0.401
Adjusted R Square	0.389
Standard Error	0.587
Observations	100

ANOVA
	df	SS	MS	F	Significance F
Regression	2	22.403	11.201	32.522	0.000
Residual	97	33.409	0.344
Total	99	55.812

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	-1.989	2.243	-0.886	0.378	-6.441	2.464	-6.441	2.464
lnP	-2.170	0.276	-7.858	0.000	-2.717	-1.622	-2.717	-1.622
lnA	0.911	0.370	2.459	0.016	0.176	1.646	0.176	1.646

	linear model	log-linear model
regression equation
	0.547	0.401
	0.538	0.389
F-statistic	58.61	32.522

For the linear regression model, the estimates indicate that R² = .547, or that 54.7 percent of the variability in the quantity demanded is explained by price and advertising. In contrast, the R² for the log-linear model is 0.401, indicating that only 40.1 percent of the variability in the natural log of quantity is explained by variation in the natural log of price and the natural log of advertising. Therefore, the linear regression model appears to do a better job explaining variation in the dependent variable.

This conclusion is further supported by comparing the adjusted R²s and the F-statistics in the two models, which are higher for the linear model compared to log-linear model

If weekly price of milk is $3.40 per gallon and MPEP decides to ramp up weekly advertising by 35 percent to $150

Rahul Sunny answered 1 year ago

what type of program allows nurses to upgrade their education and move from one educational level...

what type of program allows nurses to upgrade their education and move from one educational level to another by granting credit for coursework and experience

During the late 70s and 80s, the returns to education in the U.S. labor market increased...

During the late 70s and 80s, the returns to education in the U.S. labor market increased rapidly. What are possible explanations for this? What do you predict will occur in the labor market because of the trend?

At large (100) physician cardiology group has decided it is time to move to a new...

At large (100) physician cardiology group has decided it is time to move to a new EHR. As the practice manager, what key features should you be looking for and how will you integrate this into the practice? Keeping in mind the objections the physicians might throw at you during the monthly practice meeting, create a pitch to the managing partners for the system you think would work best for the practice. Assuming the partners approve, what is your plan...

Write a program in JAVA to create the move set of a Pokémon, and save that...

Write a program in JAVA to create the move set of a Pokémon, and save that move set to a file. This program should do the following: Ask for the pokemon’s name. Ask for the name, min damage, and max damage of 4 different moves. Write the move set data into a file with the pokemon’s name as the filename. The format of the output file is up to you, but keep it as simple as possible

There has been some discussion of late that we should consider free community college education for...

There has been some discussion of late that we should consider free community college education for all students. What are your thoughts about free community college education?

benjamin was an older adult who decided to move from his lifetime home on a small...

benjamin was an older adult who decided to move from his lifetime home on a small farm to an assisted living facility. Benjamin had no spouse or surviving family. He decided to transfer his property to his neighbor, Gabriel. Benjamin would use the money gained from the transfer to help pay for his assisted living expenses. Shortly after Benjamin had moved into the assisted living facility, Gabriel changed his mind about wanting to own the property. In subsequent litigation over...

Michael will sell his bike because he will move and he has decided to sell it...

Michael will sell his bike because he will move and he has decided to sell it to the first person who offers at least 200 $. Suppose that each price offer given for Michael's bike is independent and exponentially distributed RVs(random variable) with mean $ 100 each. a) Michael sold his bike on the Kth offer. Find PMF(probability mass function) and mean of K b) Let the amount of offer which is sold by Michael be X $. Find PDF(Probability...

An organization has decided to move from a windows server environment to a Linux Server Environment....

An organization has decided to move from a windows server environment to a Linux Server Environment. The organization requires to offer email, web, fileshare, printing services to its users which are predominantly using MAc OS and windows clients. These services would be provisioned from the newly created Linux server. a) Outline some of the issues the system administrator needs to consider when designing the solution? b) How would you resolve the issues ? c) What tools would you use in...

Madge is a sole trader who has decided to form a small proprietary company and move...

Madge is a sole trader who has decided to form a small proprietary company and move her business into a corporate form. Madge’s business is quite small, with some assets and modest revenue. She has paid tax personally in the past. Madge is now curious as to whether there are any requirements on the small company she is about to register. What are the procedures and reporting requirements on a small proprietary company regarding records, accounts and reports required by...

Modify the AlienDirection program from this chapter so that the image is not allowed to move...

Modify the AlienDirection program from this chapter so that the image is not allowed to move out of the visible area of the window. Ignore any key that would allow this to happen. *Ask if you have any questions about the assignment I will try to clarify Textbook - JAVA FOUNDATIONS: INTRODUCTION TO PROGRAM DESIGN AND DATA STRUCTURES 5TH EDITION Starter Code Provided : import javafx.application.Application; import javafx.scene.Group; import javafx.scene.Scene; import javafx.scene.image.Image; import javafx.scene.image.ImageView; import javafx.scene.input.KeyEvent; import javafx.scene.paint.Color; import javafx.stage.Stage;...

Question