Natural Logarithm


1. Run a regression of the natural logarithm of sales on all the following: price, print marketing expenditure, outdoor marketing expenditure and previous years’ sales

2. Run a regression of the natural logarithm of change in sales on the natural logarithm of previous period’s prices and the natural log of marketing expenditures on print, outdoor and broadcasting

3. To understand the influence of vodka quality, run a regression by adding the tier 1 and tier 2 dummy variables (that indicate whether a vodka brand belongs to first or second quality tiers) to the set of independent variables in questions 2.

4. To understand the influence of competition and brand power, run a regression by adding the sum of sales of all the competing brands in the previous year (“lagtotalminussales”) to the independent variables in question 3

5. To measure the sales growth of new brands compared to the existent ones, include the variable “firstinto” to the independent variable set in question 4. Firstinto is equal to one in the first three years after a brand is introduced and is zero elsewhere.

6. Why does the co-efficient of price and advertising change in the above regressions?
Credit would be given to interesting insights which may not be obvious. For example, reduction in price results in increase in sales which may not be true for premium vodka brands.

2. The report should contain the following sections:

(a) Problem Objective

(b) Data Exploration

(c) Analysis and Discussion

(d) Regression Results

(e) Analysis and Discussion

The excel file to be included along with the word file

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