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A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company

A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below.

City

Price

Sales

River Falls

1.30

100

Hudson

1.60

90

Ellsworth

1.80

90

Prescott

2.00

40

Rock Elm

2.40

38

Stillwater

2.90

32

  • What is the coefficient of correlation for these data?
  • What is the estimated slope parameter for candy bar price and sales data?
  • What is (X- Xbar)^2 for these data?

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