SCENARIO 12-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product.To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices.Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below: $\begin{array}{llr}
\text { City }&\text { Price(\$)}&\text { Sales }\
\text { River Falls } & 1.30 & 100 \
\text { Hudson } & 1.60 & 90 \
\text { Ellsworth } & 1.80 & 90 \
\text { Prescott } & 2.00 & 40 \
\text { Rock Elm } & 2.40 & 38 \
\text { Stillwater } & 2.90 & 32
\end{array}$
-Referring to Scenario 12-2, what percentage of the total variation in candy bar sales is explained by prices?
A)100%
B)88.54%
C)78.39%
D)48.19%

Question

SCENARIO 12-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product.To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices.Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below: $\begin{array}{llr}
\text { City }&\text { Price(\$)}&\text {  Sales }\
\text { River Falls } & 1.30 & 100 \
\text { Hudson } & 1.60 & 90 \
\text { Ellsworth } & 1.80 & 90 \
\text { Prescott } & 2.00 & 40 \
\text { Rock Elm } & 2.40 & 38 \
\text { Stillwater } & 2.90 & 32
\end{array}$
-Referring to Scenario 12-2, what percentage of the total variation in candy bar sales is explained by prices?
A)100%
B)88.54%
C)78.39%
D)48.19%

Quizplus · Accepted Answer

The percentage of the total variation in candy bar sales explained by prices is determined by the coefficient of determination (R-squared) from the linear regression. In this case, it is 78.39%.

SCENARIO 12-2 a Candy Bar Manufacturer Is Interested in Trying

SCENARIO 12-2
a Candy Bar Manufacturer Is Interested in Trying