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A Candy Bar Manufacturer Is Interested In Trying To Estimate How Sales Are ...
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below:
City Price ($) Sales
River Falls 1.3 100
Hudson 1.6 90
Ellisworth 1.8 90
Prescott 2 40
Rock Elm 2.4 38
Stillwater 2.9 32
a. What is the estimated average change in the sales of the candy bar if price goes up $1.00?
b. What percent of the total variation in candy bar sales is explained by prices?
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