Situation: The lpod Touch has been out for two years now and a lot of data has b
ID: 3370894 • Letter: S
Question
Situation: The lpod Touch has been out for two years now and a lot of data has been collected. Relevant Relationship: There is a functional relationship between Price of an IPod Touch p and Weekly Demand,s. Below is a table of data that have been collected Price.p.(s) Weekly Demand,s,(1,000s) 217 200 200 183 183 173 150 170 190 210 230 250 A.. Find the linear model that best fits this data using regression and enter the model below (for entry round the linear parameter value to nearest 0.01 and constant parameter to nearest 1) s = T(p) = B. The squared correlation coefficient r2 was Select an answer 0.95 (note: values less than 0.95 MAY mean the model is not appropriate for making predictions) Now answer these two questions using the UNROUNDED model parameters C. What does the model predict will be the weekly demand if the price of an ipod touch is $220 ? D. According to the model at what should the price be set in order to have a weekly demand of 187,700 ipod Touches?$ (nearest $1) Note: In the "real" world Apple sold about 20 million Ipod Touch's from Sept. 2007-Sept. 2009 Answer Preview (nearest 100)Explanation / Answer
A.) Please find the linear regression equation below:
s = -0.41143Xp + 274.95238
B.) The R square is given as:
0.9306
C.) If price is 220$, then weekely demand should be 184 as per our model.
D.) If demand is 187700 or we can say 187.7
Price = 212 from our model
R square =0.9306