Does the price of items affect store's sales of any product. Data from a store along Bull Street...

Does the price of items affect store's sales of any product. Data from a store along Bull Street was analyzed using regression analysis. The coefficient of determination (r-squared) was found to 0.64. Least squares regression equation is given by

SALES = 2259 - 1418 PRICE

Can we say here that the price is a good predictor of sales?

	A.	Yes, the slope is negative
	B.	No, r-squared is not too good.
	C.	Yes, the intercept is very large.

Expert Solution

Does the price of items affect store's sales of any product. Data from a store along Bull Street was analyzed using regression analysis. The coefficient of determination (r-squared) was found to 0.64. Least squares regression equation is given by

SALES = 2259 - 1418 PRICE

Can we say here that the price is a good predictor of sales?

correct option is A Yes the slope is negative

here PRICE coefficient is negative it is affect on the store sale .

we know that as PRICE is less SALES is more , it is general rule for market .

so here PRICE should be less if we want to increase sales .

here R square value is 0.64 also it is good . so our model is good .

orchestra answered 1 year ago

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Does the price of items affect store's sales of any product. Data from a store along Bull Street...

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