Asked by Chris
Choose the right answers, and provide reasons and calculation
To study the effect of change in price of a DVD ($) on the total profit (000, dollars), the analyst of an
electronic firm randomly selected 13 retail sales stores. She used the data on total profit (y) and DVD
price change (x) of these retail stores to get SSyy=298, and SSxx=44.16.and found the point prediction
ŷ = 27 – 2.5x of y. She chose α=0.01to make the decision. The point prediction ŷ = 27 – 2.5x of y
i. can be used to predict total profit from a given change in price of a DVD in the experimental region.
ii. will help the electronic firm to forecasting total profit if the firm continues its current sale strategies.
iii. will increase the total profit 2500 on the average if price of one DVD decrease by $1
iv. can be used for all of above
To study the effect of change in price of a DVD ($) on the total profit (000, dollars), the analyst of an
electronic firm randomly selected 13 retail sales stores. She used the data on total profit (y) and DVD
price change (x) of these retail stores to get SSyy=298, and SSxx=44.16.and found the point prediction
ŷ = 27 – 2.5x of y. She chose α=0.01to make the decision. The point prediction ŷ = 27 – 2.5x of y
i. can be used to predict total profit from a given change in price of a DVD in the experimental region.
ii. will help the electronic firm to forecasting total profit if the firm continues its current sale strategies.
iii. will increase the total profit 2500 on the average if price of one DVD decrease by $1
iv. can be used for all of above