Question $5$

Situation: The Ipod Touch has been out for two years now and a lot of data has been collected.

Relevant Relationship:

There is a functional relationship between Price of an IPod Touch, $p$ and Weekly Demand, $s.$

Below is a table of data that have been collected

A$..$ Find the linear model that best fits this data using regression and enter the model below

$($for entry round the linear parameter value to nearest $0\mathrm{.}01$ and constant parameter to nearest $1)$

$s=T(p)=$

B$.$ The squared correlation coefficient $r^2$ was

$($note: values less than $0\mathrm{.}95$ MAY mean the model is not appropriate for making predictions$)$

Now answer these two questions using the UNROUNDED model parameters

C$.$ What does the model predict will be the weekly demand if the price of an ipod touch is $$154?$

$($nearest $100)$

D$.$ According to the model at what should the price be set in order to have a weekly demand of $197,300$

ipod Touches? $?$

$($nearest $$1)$

Note: In the "real" world Apple sold about $20$ million Ipod Touch's from Sept. $2007-$Sept. $2009$ Answer