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 5 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 below:

City	Price ($)	Sales
River City	1.30	100
Hudson	1.60	90
Ellsworth	1.80	90
Prescott	2.00	40
Rock Elm	2.40	38

Referring to Table 1, if the price of candy is set at $2.0, the estimated mean sales will be

A-59.99

B-2.67

C-65

D-3.02

Answer 1

The statistical software output for this problem is:

From above output:

Regression equation: y = 118.95 - 64.48x

For x = 2: y = 118.95 - 64.68*2 = 59.99

Option A is correct.