A Regression Analysis Between Demand (Y in 1000 Units) and Price

question 23

Multiple Choice

A regression analysis between demand (y in 1000 units) and price (x in dollars) resulted in the following equation: $\hat { y }$ = 9 - 3x

The above equation implies that if the price is increased by $1, the demand is expected to

• A) increase by 6 units.
• B) decrease by 3 units.
• C) decrease by 6000 units.
• D) decrease by 3000 units.