TABLE 5.3 Mrs. Smyth’s Gourmet Frozen Fruit Pie Regional Market Demand Data, 2006-1 to 2007-4
Year-
Quarter
Unit Sales (Q)
Price
($)
Advertising
Expenditures
($)
Competitors’
Price ($)
Income
($)
Population
Time
Variable
Atlanta-Sandy Springs-Marietta, GA
2006-1 193,334 6.90 15,827 7.40 48,421 5,055,856 1
Chicago-Naperville-Joliet, IL-IN-WI
2006-1 401,805 6.57 27,183 5.34 50,456 9,509,448 1
2006-2 412,312 6.62 27,572 6.56 51,100 9,526,087 2
Dallas-Fort Worth-Arlington, TX
2006-1 255,203 7.07 19,880 7.46 44,249 5,952,784 1
Los Angeles-Long Beach-Santa Ana, CA
2006-1 738,760 6.21 42,925 5.93 53,929 13,030,242 1
Minneapolis-St. Paul-Bloomington, MN-WI
2006-1 291,773 5.78 13,896 6.18 58,959 3,176,146 1
Washington-Arlington-Alexandria, DC-VA-MD-WV
2006-1 395,314 6.26 22,626 7.02 48,717 5,297,098 1
2006-2 436,103 5.75 22,697 6.83 49,338 5,318,031 2
TABLE 5.4 Estimated Demand Function for Mrs. Smyth’s Gourmet Frozen Fruit Pies
Variable Coefficient
Standard
Error of
Coefficient
t statistic
(1) (2) (3) (4) = (2)/(3) DC estimates
Intercept 529,774 271,331 1.95 529,774
Price (P) -122,607 16,422 -7.47 7.95 (974,725.65)
Advertising (A) 5.838 1.65 3.54 30,487 177,983.11
Competitor Price (PX ) 29,867 13,449 2.22 5.69 169,943.23
Income (Y) 2.043 3.762 0.54 53,235 108,759.11
Population (Pop ) 0.030 0.004 7.50 5,445,382 163,361.46
Time (T) 2,815 4,539 0.62 9 25,335.00
F statistic = 45.16
Standard Error of the Estimate = SEE = 67,584
Unit
Sales (Q)
Price
($)
Advertising
Expenditures
($)
Competitors’
Price ($)
Income
($)
Population
Time
Vari
able
2006-1 193,334 6.90 15,827 7.40 48,421 5,055,856 1
2006-2 170,041 7.79 20,819 5.18 49,038 5,091,361 2
2006-3 247,709 6.21 14,062 5.65 49,663 5,127,115 3
2006-4 183,259 7.29 16,973 6.60 50,296 5,163,120 4
2007-3 444,040 6.44 26,607 5.66 54,441 9,609,718 7
2007-4 376,046 7.79 32,760 5.23 55,136 9,626,532 8
2006-1 255,203 7.07 19,880 7.46 44,249 5,952,784 1
2006-2 270,881 6.60 19,151 6.69 44,813 5,986,874 2
2006-3 330,271 6.07 15,743 6.45 45,385 6,021,160 3
2007-2 651,162 7.24 48,911 6.02 57,456 13,165,267 6
2007-3 765,124 7.06 49,422 7.43 58,188 13,192,440 7
2007-4 741,364 6.19 44,061 6.82 58,930 13,219,669 8
2006-1 291,773 5.78 13,896 6.18 58,959 3,176,146 1
2006-2 153,018 6.84 27,429 5.06 59,711 3,184,576 2
2007-1 352,181 6.49 23,777 6.68 51,249 5,381,330 5
2007-2 317,322 7.58 27,544 5.20 51,903 5,402,596 6
2007-3 422,455 6.17 23,852 5.20 52,565 5,423,947 7
2007-4 290,963 7.95 30,487 5.69 53,235 5,445,382 8
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.93329645
ANOVA
df SS MS FSignificance F
Regression 6 1.26491E+12 2.10819E+11 46.15560361 1.08099E-16
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 529773.6736 271330.8728 1.952500532 0.057729377 -18190.13453 1077737.482 -18190.13453 1077737.482
X Variable 1 -122606.8172 16422.3756 -7.465839306 3.65369E-09 -155772.4772 -89441.15724 -155772.4772 -89441.15724
X Variable 2 5.837648021 1.650493714 3.536910181 0.001021283 2.50440838 9.170887662 2.50440838 9.170887662
X Variable 3 29866.58941 13449.21601 2.22069371 0.031956599 2705.346944 57027.83187 2705.346944 57027.83187
X Variable 4 2.042729228 3.762305002 0.542946206 0.590106512 -5.555399784 9.64085824 -5.555399784 9.64085824
X Variable 5 0.030258034 0.0039448 7.670359705 1.89567E-09 0.022291349 0.038224718 0.022291349 0.038224718
R Square 0.871042264
Adjusted R Square 0.8521704
Standard Error 67583.77555