document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=155440>Question 155440</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/9780072966930/algebrahomeworkh>Applied Statistics in Business and Economics</A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> I have no idea how to solve this for a Simple NOVA can you please help?!\r<BR>\n" );
document.write( "\n" );
document.write( "(a) Interprete the slope of the fitted regression Sales = 842 - 37.5 Price <BR>\n" );
document.write( "(b) If Price =20, what is the prediction for Sales?<BR>\n" );
document.write( "(c) Would the intercept be meaningful if this regression represents DVD sales <BR>\n" );
document.write( "at Blockbuster?<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #114514 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=114514\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> solve this for a Simple NOVA can you please help?! <BR>\n" );
document.write( "(a) Interpret the slope of the fitted regression Sales = 842 - 37.5 Price<BR>\n" );
document.write( "The independent variable is Price. Its coefficient is the slope.<BR>\n" );
document.write( "Since the slope is -37.5 that means Sales decreases 37.5 for $1 increase<BR>\n" );
document.write( "in the price.<BR>\n" );
document.write( "To see this let price = 0, then let price equal 1.  You will see that<BR>\n" );
document.write( "Sales goes down $37.50 <BR>\n" );
document.write( "===========================<BR>\n" );
document.write( " <BR>\n" );
document.write( "(b) If Price =20, what is the prediction for Sales?<BR>\n" );
document.write( "Sales (20) = 842 -37.5*20 = $92.00<BR>\n" );
document.write( "-------------------------------------------<BR>\n" );
document.write( "(c) Would the intercept be meaningful if this regression represents DVD sales <BR>\n" );
document.write( "at Blockbuster?<BR>\n" );
document.write( "The intercept is Sales(0) = 842<BR>\n" );
document.write( "No, it would not be meanful as it says Sales = $842 if price is zero.<BR>\n" );
document.write( "======================================<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.\r<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );