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Instruction 12-2
a Chocolate Bar Manufacturer Is Interested in Trying

Question 2

Multiple Choice

Instruction 12-2
A chocolate 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 six country towns and cities and offers the chocolate bar at different prices.Using chocolate bar sales as the dependent variable,the company will conduct a simple linear regression on the data below:
 City  Price ($)  Sales  Toowoomba 1.30100 Broken Hill 1.6090 Bendigo 1.8090 Kalgoorlie 2.0040 Launceston 2.4038 Port Augusta 2.9032\begin{array} { l l r r } { \text { City } } & & \text { Price } ( \$ ) & \text { Sales } \\\hline \text { Toowoomba } & & 1.30 & 100 \\\text { Broken Hill } & & 1.60 & 90 \\\text { Bendigo } & & 1.80 & 90 \\\text { Kalgoorlie } & & 2.00 & 40 \\\text { Launceston } & & 2.40 & 38 \\\text { Port Augusta } & & 2.90 & 32\end{array}
-Referring to Instruction 12-2,what is the estimated average change in the sales of the chocolate bar if price goes up by $1.00?


A) 0.784
B) -3.810
C) 161.386
D) -48.193

Correct Answer:

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