Question

Market researchers were interested in the relationship between the price of bobbleheads and the demand of bobbleheads. Information was collected from a survey and used to obtain the regression equation ŷ = –0.227x + 50.455, where x represents the price of bobbleheads (measured in dollars) and ŷ is the predicted demand of bobbleheads (in units). What is the predicted demand of a bobblehead that has price of $6.00?

–1.362 units

49.093 units

51.817 units

195.837 units

Answer 1

49.093

Explanation:

Given the regression equation :

ŷ = –0.227x + 50.455

x represents the price of bobbleheads (measured in dollars)

ŷ is the predicted demand of bobbleheads (in units).

Preductwd demand ; when x = 6

ŷ = –0.227(6)+ 50.455

= 49.093