Overview
INSTRUCTIONS:- I have attached the data reference in excel file.Kindly solve all parts of the questions and EXACT answers and write comments where the questions asks for it , not just the possibilities, so I can understand better.The questions requires the use of the following SAS components: • Data Step • Proc Freq • Proc Mean • Proc Reg • Proc Corr
Question 1. A) Convert the data file SVEDKA.csv to a SAS dataset.
B) Study the data along with the data dictionary and
C)write a summary about it.
Question 2. Generate summary statistics for the data. What can you infer about the data at this stage?
Question 3. A) Run a linear regression of sales on prices. Write out the regression equation.
B)What can you conclude about Vodka prices?
Question 4. A) Run a regression which includes price and advertising. What variables in the data represent advertising?
B)Describe your methodology for choosing your model specification.
C) Write out the regression equations for your specification.
D) Comment on your results.
Question 5 . The dataset classifies the brands into three quality tiers.
Tier 1 brands: Chopin, Belvedere, Grey Goose, Level, Ketel One, Absolut, Stolichnaya, Pravda, and Ciroc. Tier 2 brands: Smirnoff, Sky, Finlandia, Three Olives, Fris, Seagrams, Polar Ice, Van Gogh, Tanqueray, Pearl, Iceburg, and Svedka Tier 3 brands: All remaining brands Create dummy variables for the Tier variable. How many dummy variables will you need?
Question 6. A)Run a regression model to understand the influence of vodka quality tiers on sales by including Tier dummies to the above model.
B) What do the results tell you about Tier 1 and Tier 2 brands?
C) Should Svedka management consider competing in Tier 1?
Question 7. A)Compute the demand elasticity of price using the estimates from the chosen model from the previous questions.
B)What can you conclude about Vodka prices based on the elasticity measures?
Question 8. A) Based on your analysis of the Vodka data, what recommendations can you make to the SVEDKA management. Specifically what recommendations would you make based on estimated Price, Advertisement and Tier 1 coefficients.
B) Based on your analysis of the demand elasticity, what would you recommend to the management?