Question

A company has recorded data on the weekly sales for its product (y) and the unit price of the competitor's product (x). The data resulting from a random sample of 7 weeks follows. Use Excel's Regression Tool to answer the following questions. Week Price Sales 1 .33 20 2 .25 14 3 .44 22 4 .40 21 5 .35 16 6 .39 19 7 .29 15 What is the estimated regression equation

Answer 1

y = 41.603X + 3.582

Explanation:

Given the data:

Week ___Price ____ Sales

1 _______.33 _______20

2 ______ .25 _______ 14

3 ______ .44 _______ 22

4 ______ .40 _______ 21

5 ______ .35 _______ 16

6 ______ .39 _______ 19

7 ______ .29 _______ 15

Using the linear regression calculator ; The regression equation obtained is :

y = 41.603X + 3.582

Where ;

y = sales (predicted variable)

x = price (predictor variable)

Slope = 41.603

Intercept = 3.582