Determining simple regression analysis

Reference no: EM1396489

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:

City Price ($) Sales

River Falls 1.3 100

Hudson 1.6 90

Ellisworth 1.8 90

Prescott 2 40

Rock Elm 2.4 38

Stillwater 2.9 32

a. What is the estimated average change in the sales of the candy bar if price goes up $1.00?

b. What percent of the total variation in candy bar sales is explained by prices?

Reference no: EM1396489

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