the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below:
CityPrice ($)Sales
River Falls 1.3 100
Hudson 1.6 90
Ellisworth1.8 90
Prescott 2 40
Rock Elm2.4 38
Stillwater 2.9 32
What is the estimated average change in the sales of the candy bar if price goes up $1.00?
What percent of the total variation in candy bar sales is explained by prices?
The estimated average is 25,000 dollars.
May 24th, 2010 at 2:42 am
The estimated average is 25,000 dollars.
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