Case Study- Soft Drinks Study Example | Topics and Well Written Essays - 250 words

- Soft Drinks - Case Study Example The model is statistically significant and thus useful in determining future demand. Note that, significant F = 1.6455* 10-11 (approximately equal to zero). The implication is that the model is relevant with the estimators statistically different from zero (i.e. ÃŽ ²1 ≠  ÃŽ ²2≠  ÃŽ ²3≠ 0) 5. Now omit the price and temperature from the regression equation. Should a marketing plan for soft drinks be designed that relocates most canned drink machines into low-income neighborhoods? Why or why not? (20%) The negative sign in the income coefficient implies that a change in income influences quantity of soft drink cans consumed in the reverse direction. Therefore, the region with the lowest per-capita income will have the highest consumption. However, given that the R2 is 0.11 ( very low), the independent variable only explains 11% of the changes in the dependent variable leaving a very high percentage ( 89%) to be explained by other factors, hence not a good