Consider the following data concerning the demand (y) and price (x) of a consumer product.

a. Plot y versus x. Does it seem reasonable to use the simple linear regression model to relate y to x?
b. Calculate the least squares point estimates of the parameters in the simple linear regression model.
c. Write the least squares prediction equation. Graph this equation on the plot of y versus x.
d. Test the significance of the regression relationship between y and x.
e. Find a point prediction of and a 95 percent prediction interval for the demand corresponding to each of the prices $2.10, $2.75, and $3.10.

Demand, y Price, x 252 $2.00 244 $2.20 241 $2.40 234 $2.60 230 $2.80 223 $3.00