A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Use the data below to answer the questions: City Price ($) Quantity Sold A 1.30 100 B 1.60 90 C 1.80 90 D 2.00 40 E 2.40 38 F 2.90 32 a. Plot the data. b. Is there a relation between price and sales? c. Calculate the least squares line coefficients of bo and b1. What does each number mean? d. What would you expect to be the sales of the candy at the price of $3.00? e. What is the standard error for your predictions? What does it mean? f. What is correlation coefficient? What does it mean? g. What is the coefficient of determination? What does it mean?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Use the data below to answer the questions:
| City | Price ($) | Quantity Sold |
| A | 1.30 | 100 |
| B | 1.60 | 90 |
| C | 1.80 | 90 |
| D | 2.00 | 40 |
| E | 2.40 | 38 |
| F | 2.90 | 32 |
a. Plot the data.
b. Is there a relation between price and sales?
c. Calculate the least squares line coefficients of bo and b1. What does each number mean?
d. What would you expect to be the sales of the candy at the price of $3.00?
e. What is the standard error for your predictions? What does it mean?
f. What is
g. What is the coefficient of determination? What does it mean?
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