Question

websit (-/3 Points! DETAILS STEVENSSTAT4 10.P.002ABC. 0/4 Submissions Used Business/Economics Below is the scatterplat, regression in, and corresponding statistics for price (x) - number sold in data Demand Data Price v Demand Price per item in dollars) y - Demand (number of items sold) correlation coefficient: --0954 regression equation: 103 + 1431 sample size 19 sample means Price per min dollars) - 56.50 - 7604 Answer the following questions regarding the retionship between price and demand ). (*) Is there a significant linear correlation between these variables Number Sold No C) what percentage of the variation in demand can be explained by the linear relation to prica Enter your answer as a percentage with one decimal place How many tems would you expect to sell if the price was set at 7.50 Round your answer to the nearest whole number Hems Additional Materials MacBook B A 2 3 7 9

Answer 1

a)

H0 : There is no correlation exists between the variable.

Ha : There is correlation exists between the variable.

Given : r = -0.954 , | r | = 0.954

n = 19 , Assume α = 0.05

Therefore critical value = 0.456

As | r | is greater than 0.456 ,We reject H0

Yes, there is significant linear correlation between these variables.

b) $r^2$ = -0.954*0.954 = 0.910  

91% of the variation in demand can be explained by the linear relation to price.

c) Regression equation : $1596244201970_blob.png$ = -103x +1431

We are given x = 7.50

$1596244201970_blob.png$ = ( -103*7.50 ) +1431

$1596244201970_blob.png$ = 658.5

659 items .