Price–demand. A company manufactures memory chips for microcomputers. Its marketing research department, using statistical techniques, collected the data shown in Table 8, where p is the wholesale price per chip at which x million chips can be sold. Using special analytical techniques ( regression analysis ), an analyst produced the following price–demand function to model the data: p ( x ) = 75 − 3 x 1 ≤ x ≤ 20 Table 8 Price–Demand x (millions) p ($) 1 72 4 63 9 48 14 33 20 15 (A) Plot the data points in Table 8, and sketch a graph of the price–demand function in the same coordinate system . (B) What would be the estimated price per chip for a demand of 7 million chips? For a demand of 11 million chips?
Price–demand. A company manufactures memory chips for microcomputers. Its marketing research department, using statistical techniques, collected the data shown in Table 8, where p is the wholesale price per chip at which x million chips can be sold. Using special analytical techniques ( regression analysis ), an analyst produced the following price–demand function to model the data: p ( x ) = 75 − 3 x 1 ≤ x ≤ 20 Table 8 Price–Demand x (millions) p ($) 1 72 4 63 9 48 14 33 20 15 (A) Plot the data points in Table 8, and sketch a graph of the price–demand function in the same coordinate system . (B) What would be the estimated price per chip for a demand of 7 million chips? For a demand of 11 million chips?
Solution Summary: The author illustrates the graph of the price-demand function in the same coordinate system, where p is the wholesale price per chip at which x million chips can be sold.
Price–demand. A company manufactures memory chips for microcomputers. Its marketing research department, using statistical techniques, collected the data shown in Table 8, where p is the wholesale price per chip at which x million chips can be sold. Using special analytical techniques (regression analysis), an analyst produced the following price–demand function to model the data:
p
(
x
)
=
75
−
3
x
1
≤
x
≤
20
Table 8 Price–Demand
x (millions)
p($)
1
72
4
63
9
48
14
33
20
15
(A) Plot the data points in Table 8, and sketch a graph of the price–demand function in the same coordinate system.
(B) What would be the estimated price per chip for a demand of 7 million chips? For a demand of 11 million chips?
Definition Definition Statistical method that estimates the relationship between a dependent variable and one or more independent variables. In regression analysis, dependent variables are called outcome variables and independent variables are called predictors.
national homebuildet builds single-family homes and condominium-style townhouses. The accompanying dataset provides information on the selling price. Lot cost, and type of home for closings during one month. (See picture) A. Develop a multiple model for sales price as a function of lot cost and type of home without any interaction term. Create a dummy variable named "townhouse", where it is equal to 1 ehn type= "townhouse" and 0 otherwise. Determine the coefficients of the regression equation. Sale price = __ + (__) • Lot cost + (__) • townhouse. (Round the consant and coefficient of townhouse to the nearest intergar as needed. Round all other values to two decimal places as needed).
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Chapter 1 Solutions
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