Question

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	217
170	201
190	201
210	190
230	176
250	168

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)=  

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 $228 ?  (nearest 100)

C. According to the model at what should the price be set in order to have a weekly demand of 173,300 ipod Touches? $ (nearest $1)

Note: In the "real" world Apple sold about 20 million Ipod Touch's from Sept. 2007-Sept. 2009

Answer 1