A building supply company provides bricks to retail chains and construction companies across Canada. The marketing department

Question:

A building supply company provides bricks to retail chains and construction companies across Canada. The marketing department decides on the price at which bricks will be sold according to the design of the brick, sales of similar designs in previous years, and whether the company has other bricks selling at similar prices. They aim to offer bricks at a broad range of prices. The table gives sales of bricks at different prices last year, and the company is planning to sell the same bricks this year:

Selling Price per Brick ($)                     Sales Revenue ($m)
0.42...........................................................................................8.1
0.49...........................................................................................9.4
0.56.........................................................................................10.8
0.76.........................................................................................12.8
0.98.........................................................................................16.1
1.12.........................................................................................17.3
1.28.........................................................................................14.8
1.39.........................................................................................16.8
1.54.........................................................................................14.3
1.72.........................................................................................15.3
1.89.........................................................................................12.4
1.99.........................................................................................10.9


The purchasing department has a good deal from a manufacturer to supply a brick that could sell in the range $0.50–$1.00. The marketing department would like to sell the brick at either $0.67 or $0.87 so as to fill the gaps in the prices of the current offerings. Use a linear model to estimate the number of bricks the company could expect to sell at these two prices.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Business Statistics

ISBN: 9780133899122

3rd Canadian Edition

Authors: Norean D. Sharpe, Richard D. De Veaux, Paul F. Velleman, David Wright

Question Posted: