+0

0
601
1
+8

The following data represent the number of Pen drives sold per day at a local
computer shop and their daily average sales prices after bargain. (10 marks)
Price of each pen drive (x)     Units Sold (y)
INR 340                                        3

360                                        4
320                                        6
350                                        5
300                                        9
380                                        2
400                                        1

Develop a least-squares regression line and explain what the slope of the line
indicates.

Compute the coefficient of determination and comment on the
strength of relationship between x and y.

May 29, 2017

#1
+98196
+1

The least squares line is :

y  =  -0.0736x+29.9734

The slope indicates (generally) that as the price increases, the number of units sold decreases

The correlation coefficient, r,  is  :  -0.927709243408

The coefficient of determination  = r^2  ≈ .86.....I believe this means that the dependent variable can be strongly predicted from the independent variable

A method for calculating the regression line can be fond here :

https://www.easycalculation.com/analytical/learn-least-square-regression.php

May 29, 2017