Question

Costco sells paperback books in their retail stores and wants to examine the relationship between the prices and sales. The price of a particular novel was adjusted each week and the weekly sales are in the following table. Management would like to use a simple linear regression model that uses prices to predict sales.

Sales	Price
7	$	12
4	$	11
5	$	10
9	$	9
8	$	8
8	$	7
7	$	7

The coefficient of determination for this sample is equal to ________.

Multiple Choice

• 0.311

• 0.450

• 0.392

• 0.273

Answer 1

Using Minitab software, (Stat -> Regression -> Regression -> Fit Regression model), we get the following output :

Here,

The coefficient of determination for this sample is equal to R² = 27.35% = 0.273

ans-> 0.273