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 ŷ = –0.227x + 50.455, where x represents the price of a bobblehead (measured in dollars) and ŷ is the predicted demand of bobbleheads (in units). What is the predicted demand of a bobblehead that has price of $29.99?
Substitute the price of $29.99 for x in the regression equation: ŷ = −0.227(29.99) + 50.455 = 43.64727. The predicted demand is 43.64727 units, which is choice B.
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