A company has recorded data on the daily demand for its product (y in thousands of units) and the unit price (x in hundreds of dollars). A sample of 15 days demand and associated prices resulted in the following data.
?x = 75?(y - 
)(x - 
) = -59?y = 135?(x - )2 = 94?(y - )2 = 100 SSE = 62.9681 ?
a.Using the above information, develop the least squares estimated regression line and write the equation.b.Compute the coefficient of determination.c.Perform an F test and determine whether or not there is a significant relationship between demand and unit price. Let ? = .05.d.Would the demand ever reach zero? If yes, at what price would the demand be zero?
What will be an ideal response?
| a. |  = 12.138 - .6277x |
| b. | r2 = .3703 |
| c. | F = 7.65; p-value is between .01 and .025; reject H0 and conclude that demand and unit price are related |
| d. | Yes, at $1934 (rounded). |
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