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Question 1
The following data gives X, the price charged per piece of plywood and Y, the quantity sold (in thousands).
Price per Piece, X Thousands of Pieces Sold, Y
$6 80
$7 60
$8 70
$9 40
$10 0
a) Prepare a scatter plot of these data points.
b) Compute the covariance.
c) Compute and interpret b1.
d) Compute b0.
e) What quantity of plywood would we expect to sell if the price was $7 per piece?
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