Instruction 12 -Referring to Instruction 12

question 162

Multiple Choice

Instruction 12.2
A chocolate 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 six country towns and cities and offers the chocolate bar at different prices. Using chocolate bar sales as the dependent variable, the company will conduct a simple linear regression on the data below:
$$\begin{array} { | l | l | l | } \hline \text { City } & \text { Price(\$) } & \text { Syles } \\\hline \text { Toowoomba } & 1.30 & 100 \\\hline \text { Broken Hill } & 1.60 & 50 \\\hline \text { Bendigo } & 1.80 & 50 \\\hline \text { Kalgoorlie } & 2.00 & 40 \\\hline \text { Launceston } & 2.40 & 38 \\\hline \text { Port Augusta } & 2.50 & 32 \\\hline\end{array}$$
-Referring to Instruction 12.2,what is the percentage of the total variation in chocolate bar sales explained by the regression model?

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

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Definitions:

GDP

Gross Domestic Product, a monetary measure of the market value of all final goods and services produced within a country during a specified period.

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Average American

Refers to a statistical concept often used to describe the typical individual in the United States in terms of income, behavior, or traits based on averages.

Average Japanese

A term that might refer to statistical averages representing the socio-economic or demographic characteristics of the Japanese population, but lacks precise definition without context.