You can
put this solution on YOUR website!solve this for a Simple NOVA can you please help?!
(a) Interpret the slope of the fitted regression Sales = 842 - 37.5 Price
The independent variable is Price. Its coefficient is the slope.
Since the slope is -37.5 that means Sales decreases 37.5 for $1 increase
in the price.
To see this let price = 0, then let price equal 1. You will see that
Sales goes down $37.50
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(b) If Price =20, what is the prediction for Sales?
Sales (20) = 842 -37.5*20 = $92.00
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(c) Would the intercept be meaningful if this regression represents DVD sales
at Blockbuster?
The intercept is Sales(0) = 842
No, it would not be meanful as it says Sales = $842 if price is zero.
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Cheers,
Stan H.
