Question
Wendys is offering the new World Cup Fries with tahini sauce as a promotional tie-in for the new season of Ted Lasso on AppleTV, and
Wendys is offering the new World Cup Fries with tahini sauce as a promotional tie-in for the new season of Ted Lasso on AppleTV, and wonders how much they should charge. It test-markets five different prices in the cities listed below, with the listed resultant sales (in thousands of dollars):
City | Sales($000s) | Price($) | Price2 | Sales2 | Price*Sales |
Rochester | 75 | 0.99 | 0.98 | 5625.00 | 74.3 |
Ottumwa | 70 | 1.29 | 1.66 | 4900.00 | 90.3 |
Seattle | 45 | 1.49 | 2.22 | 2025.00 | 67.1 |
Raleigh | 33 | 1.89 | 3.57 | 1089.00 | 62.4 |
Denair | 42 | 2.19 | 4.80 | 1764.00 | 92.0 |
sum | 265 | 7.85 | 13.23 | 15403.00 | 386.0 |
mean | 53 | 1.57 | 2.65 | 3080.60 | 77.2 |
st.dev. | 18.4 | 0.5 | 1.53 | 2037.06 | 13.4 |
a. Compute (numerically) and interpret (in words) the correlation between sales and price. Show all work
b. Estimate the regression function between sales and price; show all work
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started