Costco sells paperback books in their retail stores and wanted to examine the relationship between price and demand. The price of a particular novel was adjusted each week and the weekly sales were recorded in the table below. Sales Price $12 $11 $10 $9 4 10 $8 8 $7 10 Run a regression with sales as the dependent variable. Test the hypothesis that the slope is 0, i.e. that the price has no impact on the sales. What is the t-statistic for your test? Answer to 4 decimal places.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Question

2

Costco sells paperback books in their retail stores and wanted to examine the relationship
between price and demand. The price of a particular novel was adjusted each week and the
weekly sales were recorded in the table below.
Sales Price
$12
$11
4
$10
$9
$8
10
8.
10
$7
Run a regression with sales as the dependent variable. Test the hypothesis that the slope is 0, i.e.
that the price has no impact on the sales. What is the t-statistic for your test? Answer to 4 decimal
places.
Transcribed Image Text:Costco sells paperback books in their retail stores and wanted to examine the relationship between price and demand. The price of a particular novel was adjusted each week and the weekly sales were recorded in the table below. Sales Price $12 $11 4 $10 $9 $8 10 8. 10 $7 Run a regression with sales as the dependent variable. Test the hypothesis that the slope is 0, i.e. that the price has no impact on the sales. What is the t-statistic for your test? Answer to 4 decimal places.
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