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Amiba Private limited produce 10 products in their production plant. The company's research and development (R& D) department wants to estimate a price for their
- Amiba Private limited produce 10 products in their production plant. The company's research and development (R& D) department wants to estimate a price for their 11th product. Hence, R & D department has selected 10 sites thought to have essentially identical sales potential and offered the product in each location at a different price. The resulting sales are recorded in the following table.
You are required to find the equation of the regression line and forecast the sales if company fix the price at $15.25. (5 marks)
Location | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Price | 15.00 | 15.50 | 16.00 | 16.5 | 17.00 | 17.50 | 18.00 | 18.50 | 19.00 | 19.50 |
Sales ($'000) | 15 | 14 | 16 | 9 | 12 | 10 | 8 | 9 | 6 | 5 |
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