What could happen to the slope of a regression

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Reference no: EM131757952

Discussion Questions

Discussion 1: Outliers

For this discussion, you will assess the use of various support decision tools and explain why outliers are sometimes called influential observations. Discuss what could happen to the slope of a regression of Y versus a single X when an outlier is included versus when it is not included. Will this necessarily happen when a point is an outlier? You are required to give at least two examples in your response.

Discussion 2: Correlations/Linear & Multiple Regression

A golf club manufacturer is trying to determine how the price of a set of clubs affects the demand for clubs. The file P10_50.xlsx contains the price of a set of clubs and the monthly sales.

Price

Demand

$400

20,000

$420

19,000

$440

17,000

$460

16,000

$500

14,000

$380

22,000

$290

31,000

$340

26,000

$220

41,000

$700

6,000

Assume the only factor influencing monthly sales is price. Fit the following three curves to these data: linear (Y = a + bX), exponential (Y = abX), and multiplicative (Y = aXb). Which equation fits the data best?

Interpret your best-fitting equation.

Using the best-fitting equation, predict sales during a month in which the price is $470.

In the discussion area, attach the Excel document showing work.

Reference no: EM131757952

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