Question

A liquor wholesaler is interested in assessing the effect of the price of a premium scotch whiskey on the quantity sold. The results in the accompanying table on price, in dollars, and sales, in cases, were obtained from a sample of 8 weeks of sales records.

Price 19.2 20.5 19.7 21.3 20.8 19.9 17.8 17.2

Sales 25.4 14.7 18.6 11.4 11.1 15.7 29.2 35.2

Design a linear regression equation (Compute, and )

Answer 1

Independent variable (X) : Price

Dependent variable (Y): Sales

Following table shows the calculations;

	X	Y	X^2	Y^2	XY
	19.2	25.4	368.64	645.16	487.68
	20.5	14.7	420.25	216.09	301.35
	19.7	18.6	388.09	345.96	366.42
	21.3	11.4	453.69	129.96	242.82
	20.8	11.1	432.64	123.21	230.88
	19.9	15.7	396.01	246.49	312.43
	17.8	29.2	316.84	852.64	519.76
	17.2	35.2	295.84	1239.04	605.44
Total	156.4	161.3	3072	3798.55	3066.78