A Company Has Recorded Data on the Daily Demand for Its

question 55

Essay

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 15 days demand and associated prices resulted in the following data.
a.Using the above information, develop the least-squares estimated regression line and write the equation.
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   0.05.
d.Would the demand ever reach zero? If yes, at what price would the demand be zero?

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Definitions:

Annual Reports

Corporate documents that give a comprehensive summary of a company’s activities and financial performance over the preceding year.

SEC Statement

A financial disclosure or report mandated by the Securities and Exchange Commission for public companies to provide information to investors.

Auditor's Report

A formal opinion issued by an auditor based on an audit of a company's financial statements, attesting to their accuracy.

Dividends Per Share

The amount of money paid out in dividends to shareholders per share of stock held.