Provide written answers to the following 2 problems. Discuss and explain sufficiently.
The Board of Schmeckt Gut was interested in the demand for our energy bars in Atollia. Therefore,
the Board instructed the Research Department of Schmeckt Gut to conduct a survey in Atollia. The
results of the survey are provided in Table 1.
Table 1 Survey results for Atollia
Average income per
Tariff rate on imports
Number of stores
demand of energy
of energy bars
where energy bars are
bars per person
1. Using the results of the survey provided by the Research Department, see Table 1, the Board
would like you to investigate the demand for our energy bars in Atollia in more detail. More
specifically the Board is interested what the impact of offering our products at another store
might have on the demand.
Hint A: You should make use of Microsoft Excel tools discussed in the Module End
Learning Activities of Modules 1 to 3.
You should run a linear regression analysis to investigate the potential impact
of offering our product at another store.
The members of the Board of Schmeckt Gut are scheduled to meet with the Trade Minister of
Industria. The Board is interested in convincing the Government of Industria to establish closer
economic links with Atollia.
1. Based on the regression results that you have estimated as part of Problem A, what can we
tell the Trade Minister about the impact of the tariff?
2. Use an applicable diagram discussed in Module 4 to explain the impact of the tariff on our
The Board of Schmeckt Gut wants to convince the Government of Industria that a Free Trade
Agreement with Atollia would be beneficial for Industria's economy.
1. Develop a brief for the Board on the benefits of Free Trade for both countries and industria
in particular. Incorporate the results of your regression analysis and use theory and graphical
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We can see that the model is a good fit as the Adjusted R-square is as high as 0.8985 which means that 89.85% of the changes in the dependent variable is affected by the variations in the independent variables and the model is significant as the f-value is nearer to zero. The regression coefficients are significant as their p-values are lower than 0.05 and the t-values are above 2. The regression equation can be written as...