Question

A study by the Atlanta, Georgia, Department of Transportation on the effect of bus ticket prices on the number of passengers produced the following results:

Ticket price (cents):   

25        30        35        40        45        50        55        60

Passengers per 100 miles:

800     780     780     660     640     600     620     620

1. Plot these data.
2. Develop the estimating equation that best describes these data.
3. Predict the number of passengers per 100 miles if the ticket price were 70 cents.

Answer 1

1.

2. (Passengers per 100 miles) = (-6.238 * Ticket price) + 952.619

3. For 70 cents: Passengers per 100 miles = 515.959 ~ 516

Also, please find the r code for the above solutions

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library(ggplot2)

ticket_df <- data.frame("price" = c(25,30,35,40,45,50,55,60),
"psg" = c(800 ,780, 780,660 ,640, 600,620,620))

plot.lm(ticket_df)

ggplot(ticket_df, aes(x = psg, y = price))+
geom_line()+
geom_smooth(method = 'lm')

fit_equation <- lm(psg~price, data = ticket_df)
fit_equation

###################

#Call:
#lm(formula = psg ~ price, data = ticket_df)

#Coefficients:
#(Intercept) price

# 952.619 -6.238