Costco sells paperback books in their retail stores and wanted to examine the relationship between price and demand. The price of a particular novel was adjusted each week and the weekly sales were recorded in the table below.
|
Sales |
price |
|
3 |
$12 |
|
4 |
$11 |
|
6 |
$10 |
|
10 |
$9 |
|
8 |
$8 |
|
10 |
$7 |
Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel.The average weekly sales for the novel when priced at $9 is
5.32
4.70
6.22
7.56
Mangement would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel.The coefficient of determination for this sample is
.336
.830
.881
.624
The correlation coefficient for this data is
.197
-.910
-.402
-.623
Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel.The slope for the regression is
-1.457
-.920
-.584
-.675
