# Saltine crackers are purchased by over 80 of all households in the US. Sales promotions, including features, displays, and price reductions are…

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Saltine crackers are purchased by over 80 of all households in the US. Sales promotions, includingfeatures, displays, and price reductions are extremely important in this category. The major brands areNabisco Premium, Keebler Zesta, and Sunshine Krispy. The data in the spreadsheet zesta.xls summarize sales all the stores in a US city for a total of 80 weeks.There are data on the sales (volume and dollar) of both Zesta and the category as a whole, as well asinformation on whether or not any form of feature or display activity for Zesta was present each week The brand manager for Zesta would like to know how its pricing and promotional activities affect itssales and, if so, by how much. You will need to create some new variables from the provided data. First, you need to compute the average competitor price — this can be derived from the category and Zesta sales data. Other variablesmay need to be created over time. Before you begin the analysis, describe your data. It is also useful to make use of graphs in order to get a“feel” for the data. 1. Analysis of Brand Sales: Linear Modela) Estimate a linear model to answer Zesta’s brand manager‘s question,b) Note that your outcome variable should be volume sales, not dollar sales — why?c) Interpret the regression outputs.d) Are you conﬁdent in your model? 2. Analysis of Brand Sales: Exponential Modela) Estimate an exponential model to answer Zesta’s brand manager’s question.b) What is Zesta’s own price elasticity? Interpret this.c) What is Zesta’s cross-price elastlcity? Interpret this. 3. What are some limitations of this dataset?

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