a. Plot the data and a regression line on the same graph. b. Determine the correlation coefficient and interpret it.

Practical Management Science
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Author:WINSTON, Wayne L.
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25. The manager of a seafood restaurant was asked to establish a pricing policy on lobster dinners. Experimenting with prices produced the following data:
Average Number Sold per Day, y
Price, x Average Number Sold per Day, y
$6.00
6.50
6.75
7.00
7.25
7.50
8.00
200
190
188
180
170
162
160
a. Plot the data and a regression line on the same graph.
b. Determine the correlation coefficient and interpret it.
155
156
148
140
133
Price, x
$8.25
8.50
8.75
9.00
9.25
Transcribed Image Text:25. The manager of a seafood restaurant was asked to establish a pricing policy on lobster dinners. Experimenting with prices produced the following data: Average Number Sold per Day, y Price, x Average Number Sold per Day, y $6.00 6.50 6.75 7.00 7.25 7.50 8.00 200 190 188 180 170 162 160 a. Plot the data and a regression line on the same graph. b. Determine the correlation coefficient and interpret it. 155 156 148 140 133 Price, x $8.25 8.50 8.75 9.00 9.25
Expert Solution
Step 1 Introduction:

For the given dataset, I would plot the data, add the trend or regression line, I would also determine the correlation coefficient, The detailed calculations are presented below, 

 

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