The following data represent the daily demand (in thousands of units) and the un

Question

The following data represent the daily demand (in thousands of units) and the unit price (in dollars) for a product

Develop the estimted regression equatiion that can be used to predict the daily demand given the unit price.

Using Excel!! In the regression - I can see the Unit price is independent, and the Demand is dependent and the equation is y = .5112X + .6931

b. Explain if this regression model significant for the data set?

c. Explain if the coefficients are significant.

Please show the work so I understand how to get the answer :)

Daily Demand Unit Price 5 2 7 4 15 8 6 5 10 7 14 8 16 9 12 6

Explanation / Answer

here level of signigicance is not mentioned let it is alpha=5%=0.05

(a) regression equation y(demand)=0.3248+1.6817*x(unit price)

(b) since p-value=0.0009 of the model is less than alpha=0.05, so regression model is significant at 5% level of significance

(c) p-value of t of regression coefficeint=0.0009, which is less than alpha=0.05, so regression coefficient is significant at 5% level of significance

follwoing information has been generated using the given data

Analysis of Variance Source DF Sum of Mean F Value Pr > F Squares Square Model 1 109.93931 109.939 36.78 0.0009 Error 6 17.93569 2.98928 Corrected Total 7 127.875 Root MSE 1.72895 R-Square 0.8597 Dependent Mean 10.625 Adj R-Sq 0.8364 Coeff Var 16.2725 Parameter Estimates Variable DF Parameter Standard t Value Pr > |t| Estimate Error Intercept 1 0.32476 1.80511 0.18 0.8631 x 1 1.68167 0.2773 6.06 0.0009

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