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s2008m [1.1K]
3 years ago
15

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
Mathematics
1 answer:
andrew-mc [135]3 years ago
8 0

Answer:

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:

y = mx + b

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 m = -8, 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.

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