SCENARIO 12-2
a Candy Bar Manufacturer Is Interested in Trying

question 204

Multiple Choice

SCENARIO 12-2
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: $\begin{array}{llr}\text { City }&\text { Price(\$) }&\text { Sales }\\\text { River Falls } & 1.30 & 100 \\\text { Hudson } & 1.60 & 90 \\\text { Ellsworth } & 1.80 & 90 \\\text { Prescott } & 2.00 & 40 \\\text { Rock Elm } & 2.40 & 38 \\\text { Stillwater } & 2.90 & 32\end{array}$
-Referring to Scenario 12-2, what is the percentage of the total variation in candy bar sales explained by the regression model?

• A)100%
• B)88.54%
• C)78.39%
• D)48.19%

---

Definitions:

Entire Inventory Process

The comprehensive procedure of managing the complete lifecycle of inventory from acquisition to sales.

ANXeBusiness

A solution provider that offers secure and compliant network and technology for businesses to manage and exchange information.

Extranet

A network that connects parts of the intranets of different organizations.

Portal And Exchange

A digital platform that facilitates the exchange of information, goods, or services, acting as a gateway for users to access various resources or markets.