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Consider the following data on Price and demand for a given product. Price (X) Demand (Y): X: 6.00 Y: 200, X: 6.50 Y: 190, X: 6.75 Y: 188, X: 7.00 Y: 180, X: 7.25 Y: 170, X: 7.50 Y: 162, X: 8.00 Y: 160, X: 8.50 Y:156, X: 9.00 Y:140, X: 9.25 Y:132
a- find the regression equation to predict demand using your scientific calculator.
b- using the above equation, forecast demand if price is $9.75
c- what price must be set if demand of 220 is set by the capacity.
d- what is the correlation coefficient for this regression model? What is the interpretation?
e- what percentage in demand is contributed to variation in price? Explain.
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