Exhibit 14-6
You Are Given the Following Information About Y $\alpha$

question 87

Essay

Exhibit 14-6
You are given the following information about y and x.
-A company has recorded data on the daily demand for its product (y in thousands of units) and the unit price (x in hundreds of dollars). A sample of 11 days demand and associated price resulted in the following data.
a.Using the above information, develop the least-squares estimated regression line.
b.Compute the coefficient of determination.
c.Perform an F test and determine whether or not there is a significant relationship between demand and unit price. Let $\alpha$ = 0.05.
d.Perform a t test to determine whether the slope is significantly different from zero. Let $\alpha$ = 0.05.
e.Would the demand ever reach zero? If yes, at what price would the demand be zero? Show your complete work.

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Definitions:

Liquidation Bankruptcy

A bankruptcy procedure where a debtor's assets are sold off to pay creditors, typically under Chapter 7 in the United States.

Savings and Loan Association

A financial institution that specializes in accepting savings deposits and making mortgage and other loans.

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The act of an individual or business initiating bankruptcy proceedings on their own accord as a means to manage insurmountable debt.

Order for Relief

A court order that formally begins the process of providing legal relief to a debtor in a bankruptcy case, offering protection from creditors.