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,what is the estimated mean change in the sales of the candy bar if price goes up by $1.00?
A)161.386
B)0.784
C)- 3.810
D)- 48.193

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,what is the estimated mean change in the sales of the candy bar if price goes up by $1.00?
A)161.386 
B)0.784 
C)- 3.810 
D)- 48.193

Quizplus · Accepted Answer

The coefficient of the price variable in the regression equation is -48.193. This means that a $1.00 increase in price is expected to decrease sales by an estimated 48.193 units on average. Therefore, the answer is D.

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