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Demand Estimation by Regression Method – Some Statistical Concepts for application ( All the formulae marked in red for remembering. The rest is for your concept)
In case of demand estimation working with data on sales and prices for a period of say 10 years may lead to the problem of identification. In such a case the different variables that may have changed over time other than price, may have an impact on demand more rather than price. In order to void this problem of identification what we adopt is the techniques of demand estimation through regression process in order to distinguish the effects of different variables on demand. In order to understand the basic working and application of the model, let us start with two variable model
Two-variable Regression model
To find out the relation between two variables X & Y, usually a linear relation is estimated. If it is non-linear one then we convert it into log-linear to estimate the equation. Among the scatter of points......
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Title: Regression Analysis For Demand Estimation
Approximate Word Count: 1032
Approximate Pages: 5 (250 words per double-spaced page)
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