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Exercise

Computing willingness-to-pay

Let's compute the willingness-to-pay for brands and types of chocolate. Willingness-to-pay is the value (in currency) that will make one product equally attractive as another product. In other words, it is the amount customers are "willing to pay" for a particular brand or type of chocolate.

Instructions

100 XP
  • Extract the coefficients from choc_m2 using coef().
  • In the same line of code, divide the coefficient vector by the negative of the price coefficient. The price coefficient is 9th element of the coefficient vector.