TABLE 13-2
a Candy Bar Manufacturer Is Interested

question 188

Multiple Choice

TABLE 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:
$$\begin{array} { l l c } \hline \text { City } & \text { Price } ( \$ ) & \text { Sales } \\\hline \text { River Falls } & 1.30 & 100 \\\text { Hudson } & 1.60 & 90 \\\text { Ellsworth } & 1.80 & 90 \\\text { Prescott } & 2.00 & 40 \\\text { Rock Elm } & 2.40 & 38 \\\text { Stillwater } & 2.90 & 32 \\\hline\end{array}$$
-Referring to Table 13-2, what is the standard error of the regression slope estimate, S_b1?

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Definitions:

Economic Interests

Economic interests refer to the financial stakes or concerns that individuals, companies, or countries have in the outcome of a specific transaction, policy, or economic activity.

Misrepresentation

A false statement of fact made by one party to another party, which induces that other party to enter into a contract.

Convicted

Being found guilty of a crime by a court of law or through a guilty plea.

Economic Duress

A situation where a party is induced to enter into a contract or agreement under unlawful pressure involving threats to their economic stability.