Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the demand equation from the six data points from the scatter plot(use the number sold as the x coordinate). Does the relationship appear

What is the demand equation from the six data points from the scatter plot(use the number sold as the x coordinate). Does the relationship appear to be linear? Use regression analysis to find the line of best fit. This line will be your demand equation. How strong is the correlation?

sold price

355 1.5

320 2

265 2.5

235 3

180 3.5

125 4

I used excel and plotted the points and use excel to find the trend line.

I got -91.4x +498 with a correlation value of .993.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Financial Risk Management

Authors: Angelo Corelli

1st Edition

0415746183, 978-0415746182

More Books

Students also viewed these Finance questions

Question

Explain all drawbacks of application procedure.

Answered: 1 week ago