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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 1.30 100
Hudson 1.60 90
Ellsworth 1.80 90
Prescott 2.00 40
Rock Elm 2.40 38
Stillwater 2.90 32
1- Referring to the above listed table, what is the estimated slope parameter for the candy bar price and sales data?
A) 161.386
B) 0.784
C) -3.810
D) -48.193
2- Referring to the table in question 1, what is the estimated average change in the sales of the candy bar if price goes up by $1.00?
A) 161.386
B) 0.784
C) -3.810
D) -48.193
3- Referring to the table in question 1, what is the coefficient of correlation for these data?
A) -0.8854
B) -0.7839
C) 0.7839
D) 0.8854
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