Question

In: Statistics and Probability

The table below contains the demand and price and total cost data for the production of...

The table below contains the demand and price and total cost data for the production of x widgets. Here p is the price (in dollars) of a widget for an annual demand of x widgets, and C is the annual total cost (in dollars) of producing x widgets per year.

Annual demand Price

10 147

20 132

30 125

40 128

50 113

60 97

70 85

80 82

90 79

100 53

Use the given data to find a regression line that best fits the price-demand data for price p in dollars as a function of the demand x widgets. Here, price is the dependent variable, and demand is the independent variable. Find the regression function for price, and write it as p ( x ) = m x + b.Find the regression function for price, and write it as p ( x ) = m x + b.

Does it look like the regression line models the data well? Why or why not?
Use the regression function you found to estimate p ( x ) for specific values of x. Give the real-world interpretation of the result of such computations in complete sentences. Be sure to include units.
Find the value of x would make p ( x ) = 0. Give the real-world interpretation of the result of the computation in complete sentences. Be sure to include units.

Expert Solution

orchestra answered 1 year ago

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