Records at a company for the last 5 years show the following relationship between the units sold (in thousands) and the price of a product. Sales Price (y) $8.80 $8.00 $7.50 $6.90 $6.20 Units Sold (x) (in thousands) 3.7 5.5 6.7 7.8 9.3 a. Find the least-squares regression line for the price in terms of thousands of units sold. Round the coefficients to three decimal places. b. Estimate the price that should be charged in order to sell 10,000 units. Round your answer to the nearest cent
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Records at a company for the last 5 years show the following relationship between the units sold (in thousands) and the price of a product.
| Price (y) | $8.80 | $8.00 | $7.50 | $6.90 | $6.20 |
|---|---|---|---|---|---|
| Units Sold (x) (in thousands) | 3.7 | 5.5 | 6.7 | 7.8 | 9.3 |
b. Estimate the price that should be charged in order to sell 10,000 units. Round your answer to the nearest cent.
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