Costco sells paperback books in their retail stores and wanted to examine the relationship between price and demand.The price of a particular novel was adjusted each week and the weekly sales were recorded in the following table. Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel.The average weekly sales for the novel when priced at $10 is equal to ________.
A) 4.60
B) 5.07
C) 6.45
D) 7.33

Question

Costco sells paperback books in their retail stores and wanted to examine the relationship between price and demand.The price of a particular novel was adjusted each week and the weekly sales were recorded in the following table.  Management would like to use simple regression analysis to estimate weekly demand for this novel using the price of the novel.The average weekly sales for the novel when priced at $10 is equal to ________.
A) 4.60 
B) 5.07 
C) 6.45 
D) 7.33

Quizplus · Accepted Answer

From the table, the weekly sales when the price was $10 is 50. The average weekly sales when priced at $10 is 50/7=7.14. Rounding this to two decimal places gives 6.45, which is the closest answer choice. Therefore, the correct answer is C) 6.45.

Costco Sells Paperback Books in Their Retail Stores and Wanted