A company has recorded data on the daily demand for its product (y in thousands of units)

| August 30, 2017

Question
A company has recorded data on the daily demand for its product (y in thousands of units) and the unit price (x in hundreds of dollars). A sample of 11 days demand and associated price resulted in the following data:

?x=154

?x2=2,586

?y=451

?y2=18,901

?xy=5,930

a. Using the above information, develop the least squares estimated regression line.

b. Compute the coefficient of determination.

c. Perform an F test and determine whether or not there is a significant relationship between demand and unit price. Let alpha = 0.05.

d. Perform a t test to determine whether the slope is significantly different from zero. Let alpha = 0.05.

e. Would the demand ever reach zero? If yes, at what price would the demand be zero. Show your complete work.

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