Question 2

The study on Price ($) and Sales of automobiles resulted in the following data: Use the following formula to calculate the correlation r between the Sakes (Y) and the price (X) in the table below:

Price (X)

10

20

30

40

50

60

70

80

90

100

Sales (Y)

28

25

25

19

15

12

9

10

6

5

Use the variables and numbers in the table above to calculate the equation of the regression line:

is the predicted value of y (Sales) using x (Cost) with b_o (the sample intercept) and b₁ (the sample slope).

A. Calculate b₁

B. Calculate b₀

C. Write the equation of the regression line

D. What is the estimated value, for x = 15?