It is believed that the sales volume of one-liter Pepsi bottles depends on the price of the bottle and the price of a one-liter bottle of Coca-Cola. The following data have been collected for a certain sales region.
Pepsi Sales Pepsi Price Cola Price Pepsi Sales Pepsi Price Cola Price
11,453 0.79 1.59 6,003 1.34 1.14
10,982 0.84 1.69 5,597 1.39 1.19
11,130 0.84 1.59 5,405 1.44 1.14
9,980 0.89 1.64 4,960 1.49 1.14
9,850 0.89 1.49 4,610 1.54 1.09
9,810 0.94 1.79 4,234 1.59 0.99
9,650 0.99 1.54 4,083 1.64 1.09
8,010 1.04 1.39 3,889 1.69 0.94
7,864 1.09 1.64 3,605 1.79 1.04
7,791 1.14 1.59 3,710 1.84 0.99
7,332 1.14 1.24 3,533 1.84 0.99
7,508 1.19 1.29 3,395 1.89 0.94
6,634 1.19 1.29 3,229 1.94 0.89
The linear model Pepsi Sales = $\theta_0 + \theta_1$Pepsi Price + $\theta_2$Cola Price + $\epsilon$ and the log-log model ln(Pepsi Sales) = $\theta_0 + \theta_1$ln(Pepsi Price) + $\theta_2$ln(Cola Price) + $\epsilon$ have been estimated as follows:
Variable Linear Model Log-Log Model
Intercept 10,982.5223 8.9703
Pepsi Price -5,528.7557 N/A
Cola Price 2,364.5870 N/A
ln(Pepsi Price) N/A -1.2709
ln(Cola Price) N/A 0.2692
$R^2$ 0.9568 0.9904
Adjusted $R^2$ 0.9531 0.9895
Standard Error $s_e$ 594.2299 0.0434
Using the linear model, calculate the predicted Pepsi Sales when the Pepsi Price is $1.50 and the Cola Price is $1.25.
