In recent years, fishermen have suffered financial hardship because of shortened fishing seasons, reduced catches and lower market prices. Moreover, fishermen have complained about price fluctuations and have called for a system of minimum prices. One suggestion was that the size of the catch had an immediate impact on prices and that this relationship should be clarified before potential solutions were discussed.

In an investigation of this issue, a random 12-week-period was selected to study the price of fish ($ per kg.) versus average daily catch (in 100 kgs). The data collected were analysed, and the following results were obtained:

Variable Coefficient Standard deviation p

Constant 2.6344 0.3883 0.000

Catch (in 100 kgs) -0.0021755 0.0006475 0.007

R²= 0.53

(a) What is the estimated regression line?

(b) Interpret the estimated catch coefficient.

(c) Interpret the R²value and comment on its strength.

(d) Does catch significantly influence the price of fish?

(e) Find the predicted level of the price if the daily catch is 75,000 kg.