You should upload your report, log file and any other files that you feel would be appropriate, e.g.
graphs etc. to the dropbox on KLE. The deadline is: 23rd November
Note that there are severe penalties for collusion. All the preparation and production of the answers
should be your own work. You are advised to NOT copy other students work OR to let other
students copy your work. Both actions are equally CRIMINAL. Examiners will actively check the
INSTRUCTIONS: Your answers should be written in the form of a report of an empirical analysis.
Remember to use the units of measurement in your
The data is found in the file tuna.dta and the exercise is based on work you should have completed
in labs 6 and 7. The questions in the labs gives a good guide to the type of material that should
be included in your report.
a) How do prices affect the sales of can of Easts tuna?
Explore the characteristics of the data. Estimate the regression of Easts tuna cans on the prices of
Easts tuna and other brands. Compare the linear with a log-linear model.
b) Does the type of advertising affect sales?
Include dummy variables to explore the effect of different types of advertising on the sale of tunas
c) Does advertising affect the response of quantity to price?
Run the regression with log sales on prices, advertising and a cross product of advertising and East
price for a can. Review the revised model and comment of which, in your opinion, is the best
model, with some justification or explanation.
WORD LIMIT: 800-1000 word (not including equations, tables, appendices etc)