课程: Economics: Quantitative Demand Analysis

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Demand analysis with multiple linear regression in Excel

Demand analysis with multiple linear regression in Excel

课程: Economics: Quantitative Demand Analysis

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Demand analysis with multiple linear regression in Excel

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- If the owner of a T-shirt retail outlet asks you whether it's better to lower the price or to spend more money on advertising, the only safe answer is it depends. If this person is not happy with your response, they might ask you, "Okay, so on what does it depend?" And your next response will be, "Let's run a regression to find out." In this video, we will use price and advertising spending as the input variables to predict demand for a T-shirt. We can expect that the price has a negative affect and advertising positively affects demand. Here I am in Excel version 365 for Windows 11. Now, before I perform a linear regression in Excel, I must load the add-on Analysis ToolPak. I go to File, More, Options, Add-ins, Go and then I click on Analysis ToolPak and OK. Download and open 03_03 Demand analysis with multiple regression from the exercise files. In this table, I have three columns. The first column shows the demand…

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