Consider the following data concerning the demand (y) and price (x) of a consumer product the least squares line is found to be

Question

2 years ago

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Consider the following data concerning the demand (y) and price (x) of a consumer product the least squares line is found to be

y= 306,619-27.71.x
A) Interpret b1
B) find a point prediction of the demand corresponding to be price 2.10
C) Find %95 confidence interval for b1 and interpret it

Mathematics

1 answer:

Anastasy [175] · Answer 1 · 2023-02-27T07:26:03+03:00

The value of B1 shows a fall in demand as price rises by a unit. The point prediction is given as y = 306,560.8

<h3>How to solve the question using the intercept</h3>

The regression equation shows that y= 306,619-27.71.x

b1 = -27.71

The interpretation for b1 is that if the price of this good is increased by 1, then the demand for the good would fall by about 27.71.

<h3>The point prediction for demand</h3>

The regression line equation is given as

y= 306,619-27.71.x

when x which is price is = 2.10

Then the value of y would be:

y = 306,619 - 27.71*2.10

y = 306,560.8

c. a 95% C1 for B1 is given as:

1.96 * 27.71.

= 54.31

Read more on regression lines equations here:

brainly.com/question/25987747

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