Question

The following data represent the number of flash drives sold per day at a local computer shop and their prices. Price (x) Units Sold (y) 34 36 32 35 30 38 40 4 Refer to Case 2 data use Excel, Data Analysis, Regression tools and develop a least-squares regression line and explain what the slope of the line indicates y-esimated 29.7857 0.7286x The slope indicates that as the price goes up by $1, the number of units sold goes up by 0.7286 units. y-estimated 29.7857+0.7286x. The slope indicates that as the price goes up by $1, the number of units sold goes down by 0.7286 units. y-esimated 29.7857-0.7286x The slope indicates that as the price goes up by $1, the number of units sold goes down by 0.7286 units. None of these alternatives is correct

Answer 1

As per the given data, the regression results are below: SUMMARY OUTPUT Regression Statistics Multiple R 0.924982219 R Square 0.855592105 Adjusted R Square 0.826710526 Standard Error 1.119948978 Observations ANOVA df Regression Residual Total 1 5 6 SS MS F Significance F 37.15714286 37.15714286 29.62414579 0.002842391 6.271428571 1.254285714 43.42857143 Intercept Coefficients 29.78571429 -0.728571429 Standard Error Stat P-value Lower 95% 4.704166629 6.331772795 0.001449088 17.693269 0.133859506 -5.442806793 0.002842391 -1.072668243 Correct option: (c) y-estimated = 29.7857 -0.7286x The slope indicates that as price goes up by $1, the number of units sold goes down by 0.7286 units Correct option: (a) r2 = 0.8556; the estimated regression equation explained 85.56% of the variability in y. Good fit Correct option: F = 29.624 > 16.26; p value = 0.0028< alpha; reject HO, x and y are related Correct option: (c) = -5.4428 ; p value = 0.0028 ; reject Ho, x and y are related