Question

Situation: The Ipod Touch has been out for two years now and a lot of data has been collected.

Relevant Relationship:

There is a functional relationship between Price of an IPod Touch,pp and Weekly Demand,ss.

Below is a table of data that have been collected

Price,pp,($)	Weekly Demand,ss,(1,000s)
150	207
170	209
190	195
210	192
230	182
250	170

A.. Find the linear model that best fits this data using regression and enter the model below

(for entry round the linear parameter value to nearest 0.01 and constant parameter to nearest 1)

s=T(p)=s=T(p)=   

B. The squared correlation coefficient r2r2 was Select an answer below above  0.95

(note: values less than 0.95 MAY mean the model is not appropriate for making predictions)

Now answer these two questions using the UNROUNDED model parameters

C. What does the model predict will be the weekly demand if the price of an ipod touch is $170 ?  (nearest 100)

D. According to the model at what should the price be set in order to have a weekly demand of 191,000 ipod Touches? $ (nearest $1)

Note: In the "real" world Apple sold about 20 million Ipod Touch's from Sept. 2007-Sept. 2009 Answer

Answer 1