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January 27, 2020

Regression Analysis

The current revenue of Barneys Broilers- a fast-food chain- is $750,000. To qualify for a loan to expand the operation, Barneys Broilerss revenue would need to be $50,000 higher. In developing a strategy to generate the additional revenue, the data on price (in cents) and quantity is collected. The data is contained in the file called Q18.xls available online at MyCourses. Use these data and log-linear demand specification to obtain the estimate of the demand for broiled chicken. Write an equation that summarizes the demand, and then determine the percentage price increase or decrease that is needed to boost revenue by $50,000.

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