Suppose Pillsbury company estimates the following demand equation for its Quiche using the data from stores for March 2024:
Qx = – 5200 – 21 Px + 20 Py + 0.52 Inc + 0.80 A – 2.25M ; R2 = 0.46
(2.002) (8.5) (9.5) (1.4) (0.59) (1.21)
(Standard errors in parentheses)
Assume the following values for the independent variables:
Qx = Quantity of Pillsbury Quiche sold per month
Px (in cents) = 400
Py (in cents) = Price of Sara Lee Quiche Crusts = 500
Y (in dollars) = Per-capita monthly income of the trade area in which the store is located = $30,000
A (in dollars) = Monthly advertising expenditure = 2000
M = Total microwave ovens where the store is located = 2500
