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The Table Shows the Profit Y (In Thousands of Dollars)that

Question 66

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The table shows the profit y (in thousands of dollars)that a company made during a
month when the price of its product was x dollars per unit.  Profit, y Price, x121.20171.25201.29211.30241.35261.39271.40231.45211.49201.50151.55111.59101.6051.65\begin{array}{cc}\hline \text { Profit, } y & \text { Price, } x \\\hline 12 & 1.20 \\17 & 1.25 \\20 & 1.29 \\21 & 1.30 \\24 & 1.35 \\26 & 1.39 \\27 & 1.40 \\23 & 1.45 \\21 & 1.49 \\20 & 1.50 \\15 & 1.55 \\11 & 1.59 \\10 & 1.60 \\5 & 1.65 \\\hline\end{array}

a. Fit the model y=β0+β1x+β2x2+εy = \beta _ { 0 } + \beta _ { 1 } x + \beta _ { 2 } x 2 + \varepsilon to the data and give the least squares prediction equation.
b. Plot the fitted equation on a scattergram of the data.
c. Is there sufficient evidence of downward curvature in the relationship between profit and price? Use α=.05\alpha = .05 .

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