Question

A manufacturer sell paperback books in their retail stores and wanted to examine the relationship between price and demand. The price of a particular novel was dusted each work and the weekly sales were recorded in the company table Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel What is the total sum of squares for this sample? Click the icon to view the sample sale results for a particular novel O A 20.75 Data Table OB 4483 OG 53.51 OD 35.60 Sales 3 4 6 10 8 10 Price $12 $11 510 $9 $8 $7 Done

Answer 1

Let Sales X denotes Price of the novel Y denotes of the the novel. the regression model can be defined Bo + B, 30 and ce given data Price (xi) SCY; Bo & Bi can be estimated by using Sales x? Y? 3 1 2 144 ។ 16 12) 4 36 44 36 60 6 10 100 100 १० 10 9 81 64 64 8 8 64 70 10 49 7 100 325 364 559 {x,y;(&9) ({x) Note that, Å ý - Åł , ß, n Ex?_ (EX;)? 81 {xi = 12+1| + 10 +9+8+7 us - 56 6 so n 6 3+4+6+10+8+10 Eyi - y: Ey; 41 6 -- n 6

Now. ß, N EXY; (< y; )(Ex) {x² - ({ x:)? 364 41 x 66 6 559 - (56)? 6 - 56 -0.5138 109 som 9- 6, x 56 41 6 + X 56 109 6 2535 11.6284 218 Thus, the repression model will be Y = 11-6284-0.5138 %

Note that Total sum of square - Iy;? 2 (£y;) = 325 - (41) ? 6 - 269 6 44.833 44.84 So, the option (B) 44 84 is correct