Abdul Hassan, president of Floor Coverings Unlimited, has asked you to study the relationship between market price and the tons of rugs supplied by his competitor, Best Floor, Inc. He supplies you with the following observations of price per ton and number of tons, obtained from his secret files:
12, 5214, 10213, 8216, 18213, 6215, 15216, 20212, 42
The first number for each observation is price and the second is quantity.
a. Prepare a scatter plot.
b. Determine the regression coefficients, b0 and b1.
c. Write a short explanation of the regression equation that tells Abdul how the equation can be used to describe his competition. Include an indication of the range over which the equation can be applied.