Question

John is the manager for the soft drink category at Coke Cola in the MENA region. He believed that the demand of Coke (in cases) is only closely related to its price (in dollars). To develop a better understanding of the relationship between the demand and the price of Coke Cola he collected the following data from a random sample of 9 countries in the MENA region.

		Price of Coke (x)	Demand (y)	X2	Y2	XY
		2.5	27
		2.0	22
		2.3	26
		2.5	24
		3.5	24
		3.7	25
		3.4	26
		3.0	22
		2.7	27

1. Draw a scatter diagram of the quantity sold and price
2. Calculate the Persons’ coefficient of correlation, r
3. Describe the relationship between the demand of coke and its price
4. Find a regression equation of the demand on the price of Coke.
5. Predict the demand on Coke if the price is 3.2 dollars

Answer 1