How can you use regression model to predict future demand

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Reference no: EM131874299

Question: A firm does a regression analysis between demand and price. The regression model is as follows,

Demand = 7465 - 151* Price.

Please explain the meaning of the two coefficients: 7465 and -151.

Suppose in the historical data, the range of the Price data is [$15, $35], If the current price = $20, how can you use the regression model to predict the future demand? What if the current price is $12?

Reference no: EM131874299

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