A regression analysis between sales (in $1000s) and price (in dollars) resulted in the following equation: ŷ = 50,000 − 8x The a
bove equation implies that an increase of _____. a. $8 in price is associated with an increase of $8,000 in sales b. $1 in price is associated with a decrease of $8,000 in sales c. $1 in price is associated with a decrease of $42,000 in sales d. $1 in price is associated with a decrease of $8 in sales
b. $1 in price is associated with a decrease of $8,000 in sales
Step-by-step explanation:
Linear function:
A linear function has the following format:
In which m is the slope, which represents by how much y changes when x changes by 1.
ŷ = 50,000 − 8x
This means that , in thousands of dollars, so when the price x increases by 1, the sales will be decrease by $8,000, and thus, the correct answer is given by option b.
Hi
(1)-(-9) = 10
Yes it's equal two because we know that -×- = +. So now you have 1+9 = 10
Got it ? If you have any further question please let me know.