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In order to determine a realistic price for a new product that a company wants to market the company's research department selected 10 sites thought to have essentially identical sales potential and offered the product in each at a different price. The resulting sales are recorded in the accompanying table: PRICE ($) 15.00 15.50 SALES ($1,000s) 15 14 16.00 16 16.50 9. 17.00 12 17.50 10 18.00 8 18.50 9. 19.00 6. 19.50

In order to determine a realistic price for a new product that a company wants to market the company's research department selected 10 sites thought to have essentially identical sales potential and offered the product in each at a different price. The resulting sales are recorded in the accompanying table: PRICE ($) 15.00 15.50 SALES ($1,000s) 15 14 16.00 16 16.50 9. 17.00 12 17.50 10 18.00 8 18.50 9. 19.00 6. 19.50

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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In order to determine a realistic price for a new product that a company wants to market the company's research department selected 10 sites thought to have essentially identical sales potential and offered the product in each at a different price. The resulting sales are recorded in the accompanying table: PRICE SALES ($) ($1,000s) 15.00 15 15.50 14 16.00 16 16.50 9. 17.00 12 17.50 10 18.00 18.50 9. 19.00 6. 19.50 a). Explain carefully, which of the variables above is the independent variable and which is the dependent variable. b). Draw a scattergram of the above data. Does it seem that the two variables are somewhat related? If yes, how do they seem to be related? c). Find the equation of the sample regression line. d). Interpret the meaning of the coefficients of the equation of the sample regression line. e). At 5% level of significance, is there evidence of a linear relationship between the sales and price? f). At 5% level of significance, can we conclude that sales are negatively impacted as the price increases? g). How useful is the linear model you have established in this problem. Assess the model and explain carefully the procedures used in the assessment. h). Estimate the slope of the actual equation of the regression line using a 95% confidence interval and interpret this interval.
Transcribed Image Text:In order to determine a realistic price for a new product that a company wants to market the company's research department selected 10 sites thought to have essentially identical sales potential and offered the product in each at a different price. The resulting sales are recorded in the accompanying table: PRICE SALES ($) ($1,000s) 15.00 15 15.50 14 16.00 16 16.50 9. 17.00 12 17.50 10 18.00 18.50 9. 19.00 6. 19.50 a). Explain carefully, which of the variables above is the independent variable and which is the dependent variable. b). Draw a scattergram of the above data. Does it seem that the two variables are somewhat related? If yes, how do they seem to be related? c). Find the equation of the sample regression line. d). Interpret the meaning of the coefficients of the equation of the sample regression line. e). At 5% level of significance, is there evidence of a linear relationship between the sales and price? f). At 5% level of significance, can we conclude that sales are negatively impacted as the price increases? g). How useful is the linear model you have established in this problem. Assess the model and explain carefully the procedures used in the assessment. h). Estimate the slope of the actual equation of the regression line using a 95% confidence interval and interpret this interval.
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