question archive The owner of a retailing organization is interested in the relationship between price at which a commodity is offered for sale and the quantity sold
The owner of a retailing organization is interested in the relationship between price at which a commodity is offered for sale and the quantity sold
Subject:EconomicsPrice:3.87 Bought7
The owner of a retailing organization is interested in the relationship between price at which a
commodity is offered for sale and the quantity sold. The following sample data have been collected.
Price 25 45 30 50 35 40
Quantity sold 118 105 112 100 111 108
Using the method of least squares, determine the equation for the estimated regression line.
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Answer:
Qd=133.42-0.65P
Qd=a+bP
b=Y intercept
a=Slope
n=6
ΣX=225
ΣX^2=8875
ΣY=654
ΣXY=24240
Therefore
b=(6*24240-(225*654))/((6*8875)-225^2
b=(145440-147150)/(53250-50625)
b=-1710/2625
b=-0.6514
?a=(654-(-0.6514*225))/6
a=(654+146.5714)/6
a=133.4286
Therefore;
Qd=133.42-0.65P
PFA
