Exhibit 12-10
the Following Information Regarding a Dependent Variable Y

question 132

Essay

Exhibit 12-10
The following information regarding a dependent variable Y and an independent variable X is provided.
$$\begin{array} { l } \mathrm { n } = 4 \\\Sigma \mathrm { X } = 16 \\\Sigma \mathrm { Y } = 28 \\\Sigma \mathrm { Y } - { \bar { Y )} } \mathrm { X } - \bar { X } ) = - 8 \\\Sigma \mathrm { X } - \bar { X } ) ^ { 2 } = 8 \\\mathrm { SST } = 42 \\\mathrm { SSE } = 34\end{array}$$
-The following data represent the number of flash drives sold per day at a local computer shop and their prices.
$\begin{array}{cc}\text { Price } x)&\text { Units Sold y) }\\\$ 34 & 3 \\36 & 4 \\32 & 6 \\35 & 5 \\30 & 9 \\38 & 2 \\40 & 1\end{array}$
a. Develop a least-squares regression line and explain what the slope of the line indicates.
b. Compute the coefficient of determination and comment on the strength of relationship between x and y.
c. Compute the sample correlation coefficient between the price and the number of flash drives sold. Use ?= 0.01 to test the relationship between x and y.

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Definitions:

Institutional Investors

Organizations such as pension funds, insurance companies, and mutual funds that invest large sums of money in securities and other investment assets.

Public Companies

Corporations whose shares are publicly traded on stock exchanges, allowing for public ownership.

Acquisition

The process of gaining control or ownership of another company or asset through purchase or merger.

Merger

The combination of two or more companies into a single entity, often with the goal of increasing market share or efficiency.