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Regression analysis

Regression analysis was applied between demand for a product (Y) and the price of the product (X), and the following estimated regression equation was obtained. Y = 130 - 20 X
Based on the above estimated regression equation, if the price is increased by 2 units, then demand is expected to

decrease by 90 units
increase by 40 units
increase by 130 units
decrease by 40 units
increase by 150 units

Solution Preview

decrease by 40 units

From the slope ...

Solution Summary

Step by step method for regression analysis is discussed here. Regression coefficients, coefficient of determination, scatter diagram and significance of regression model are explained in the solution.