SCENARIO 13-2
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:

-Referring to Scenario 13-2,if the price of the candy bar is set at $2,the estimated mean sales will be
A)30
B)65
C)90
D)100

Question

SCENARIO 13-2
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:
 
-Referring to Scenario 13-2,if the price of the candy bar is set at $2,the estimated mean sales will be
A)30 
B)65 
C)90 
D)100

Quizplus · Accepted Answer

According to the regression line, if the price of the candy bar is set at $2, the estimated mean sales will be approximately 65. This can be found by plugging in $2 for the x-value in the equation of the regression line and solving for the predicted y-value (mean sales).

SCENARIO 13-2 A Candy Bar Manufacturer Is Interested in Trying to Estimate