Question

16.r-

Objective [2.6]
Situation: The Ipod 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,pp and Weekly Demand,ss.
Below is a table of data that have been collected

Price,pp,($)	Weekly Demand,ss,(1,000s)
150	214
170	207
190	191
210	190
230	180
250	172

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)=s=T(p)=    

Now answer these two questions using the UNROUNDED model parameters
B.. What does the model predict will be the weekly demand if the price of an ipod touch is $240 ?  (nearest 100)

C.. 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 1

Solution-

Using the SPSS software there is given the following output:

Coefficientsa
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta
1	(Constant)	275.762	7.599		36.289	.000
	price	-.417	.037	-.984	-11.138	.000
a. Dependent Variable: quantity

Ans- A)

linear model that best fits this data using regression using the output data where Y= Quantity taken as a dependent variable,

X= Price  taken as a independent variable, since Model

Ans-B)

unrounded model for the data

SInce

Ans-C)