Solve the Problem A) 25,165

question 47

Short Answer

Solve the problem.
-The paired data below consist of the costs of advertising (in thousands of dollars)and the number of products sold (in thousands). By using linear regression, the following function is obtained: Y = 55.8 + 2.79x where x is the cost of advertising (in thousands of dollars)and y is number of products sold (in thousands). Use this function to predict the number of products sold if the cost of Advertising is $9000. $\begin{array} { c | r r r r r r r r } \text { Cost } & 9 & 2 & 3 & 4 & 2 & 5 & 9 & 10 \\\hline \text { Number } & 85 & 52 & 55 & 68 & 67 & 86 & 83 & 73\end{array}$
A) 25,165.8
B) 77.91
C) 80.91
D) 87.61

• A) 25,165.8
• B) 77.91
• C) 80.91
• D) 87.61

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Definitions:

Price Floor

A minimum price, set by law or regulation, that must be paid for a good or service; often implemented to protect producers.

Price Support

Government interventions in the market to maintain the price of a commodity at a certain level.

Demand Curve

A chart that illustrates the link between a product's price and the amount of the product that buyers are prepared and capable of buying at different price levels.

Government Purchase

The buying of goods and services by government agencies, contributing to public sector spending.