Market researchers were interested in the relationship between the price of bobbleheads and the demand of bobbleheads. Information was collected from a market research survey and was used to obtain the regression equation widehat y is equal to negative 0 point 2 2 7 x plus 50 point 4 5 5 , where x represents the price of a bobblehead (measured in dollars) and widehat y is the predicted demand of bobbleheads (in units). What is the predicted demand of a bobblehead that has price of 29 point 9 9 dollars ?
Answer
A
90 point 1 5 4 units
B
43 point 6 4 7 2 7 units
C
50 point 4 5 5 units
D
negative 6 point 8 0 7 7 3 units
Explanation
Substitute the price, x = 29.99, into the regression equation: ŷ = −0.227(29.99) + 50.455 = 43.64727. The predicted demand is about 43.64727 units, which is choice B.
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