Final answer:
To determine the relationship between price and unit sales, a regression analysis is conducted to calculate the least-squares line. With a p-value of 0.026, we reject the null hypothesis and conclude that a significant linear relationship exists.
Step-by-step explanation:
estimate the relationship between price and unit sales:
To estimate the relationship between price and unit sales, where price is the independent variable and unit sales is the dependent variable, a scatter plot can be drawn to visualize the data. Through visual inspection or regression analysis, we can determine if a significant linear relationship exists.
Using statistical software or a calculator, we calculate the least-squares line and generate the equation in the form ลท = a + bx, where 'a' is the y-intercept and 'b' is the slope. The strength and significance of the relationship can be measured by the correlation coefficient r, and we check if 'r' significantly differs from zero.
If the hypothesis test for the slope coefficient being zero (null hypothesis) versus not zero (alternative hypothesis) renders a p-value of 0.026, which is less than the common significance level (alpha) of 0.05, we reject the null hypothesis. Consequently, we conclude that there is a significant linear relationship between price and unit sales and that the regression line can be used for predicting future sales based on price.