Question: A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data provided in the attached file.
Referring to the table what is the percentage of the total variation in candy bar sales explained by the regression model?
This solution is brief, but straight-forward, clearly illustrating how to conduct a regression analysis for this scenario. An Excel file is also attached which includes the plotted regression graphs.