The linear regression model for the weekly demand for 60-minute massages at a particular spa is given by q = –1.4 p + 211.3 where q is the number of massages demanded by customers weekly and p is the price of a massage in dollars. According to the model, which statement is true about the demand for massages. A. The price of a massage is decreasing at a rate of about $1.4 per 1 customer increase in demand. B. The price of a massage is increasing at a rate of about $211.3 per 1 customer increase in demand. C. The weekly demand is decreasing at a rate of about 1.4 massages per 1 dollar increase in price. D. The weekly demand is increasing at a rate of about 211.3 massages per 1 dollar increase in price.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
The linear regression model for the weekly demand for 60-minute massages at a particular spa is given by
q = –1.4 p + 211.3
where q is the number of massages demanded by customers weekly
and p is the price of a massage in dollars.
According to the model, which statement is true about the demand for massages.
- A.
The price of a massage is decreasing at a rate of about $1.4 per 1 customer increase in demand.
- B.
The price of a massage is increasing at a rate of about $211.3 per 1 customer increase in demand.
- C.
The weekly demand is decreasing at a rate of about 1.4 massages per 1 dollar increase in price.
- D.
The weekly demand is increasing at a rate of about 211.3 massages per 1 dollar increase in price.
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