Business Analytics
3rd Edition
ISBN: 9780135231715
Author: Evans
Publisher: PEARSON
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Chapter 8, Problem 2PE
To determine
To construct: A scatter chart and find the type of model that is best for the provided data. Also, find the model equation using the Trendline tool.
Expert Solution & Answer
Answer to Problem 2PE
The best model for the given data is linear model.
Explanation of Solution
Given information:
The data set is:
| Price | Demand |
| $11 | 2180 |
| $13 | 2020 |
| $17 | 1980 |
| $19 | 1900 |
Graph:
The
- Enter data in excel sheet.
- Select the data of Price and Demand.
- Click on Insert > Charts > Scatter.
The obtained scatterplot is:
Interpretation:
From the above constructed scatterplot, it is clear that the data points of provided data set are forming straight line downward patter which implies that the linear model is appropriate for the given data set.
Hence, linear model is best representing the given data set.
Calculation:
Follow the provided steps of excel to find the trendline equation:
- Select the chart.
- Click on + symbol and select Trendline and click on more options.
- Select the Regression Type as linear.
- Tick on Display equation on chart.
The obtained results is
Hence, the required trendline is y=-30x+2470.
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Students have asked these similar questions
Using the accompanying Home Market Value data and associated regression line,
Market ValueMarket Valueequals=$28,416+$37.066×Square
Feet, compute the errors associated with each observation using the formula
e Subscript ieiequals=Upper Y Subscript iYiminus−ModifyingAbove Upper Y with caret Subscript iYi
and construct a frequency distribution and histogram.
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Part 1
Construct a frequency distribution of the errors,
e Subscript iei.
(Type whole numbers.)
Error
Frequency
minus−15 comma 00015,000less than<
e Subscript iei
less than or equals≤minus−10 comma 00010,000
0
minus−10 comma 00010,000less than<
e Subscript iei
less than or equals≤minus−50005000
5
minus−50005000less than<
e Subscript iei
less than or equals≤0
21
0less than<
e Subscript iei
less than or equals≤50005000
9…
The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c
Overhead Costs Billable Hours345000 3000385000 4000410000 5000462000 6000530000 7000545000 8000
Using the accompanying Home Market Value data and associated regression line,
Market ValueMarket Valueequals=$28,416plus+$37.066×Square
Feet, compute the errors associated with each observation using the formula
e Subscript ieiequals=Upper Y Subscript iYiminus−ModifyingAbove Upper Y with caret Subscript iYi
and construct a frequency distribution and histogram.
Square Feet Market Value1813 911001916 1043001842 934001814 909001836 1020002030 1085001731 877001852 960001793 893001665 884001852 1009001619 967001690 876002370 1139002373 1131001666 875002122 1161001619 946001729 863001667 871001522 833001484 798001589 814001600 871001484 825001483 787001522 877001703 942001485 820001468 881001519 882001518 885001483 765001522 844001668 909001587 810001782 912001483 812001519 1007001522 872001684 966001581 86200
Chapter 8 Solutions
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