According to basic economics, as the demand for a product increases, the price will decrease. Listed below
Question:
According to basic economics, as the demand for a product increases, the price will decrease. Listed below is the number of units demanded and the price:
Demand | Price |
2 | $120 |
5 | 90 |
8 | 80 |
12 | 70 |
16 | 50 |
21 | 45 |
27 | 31 |
35 | 30 |
45 | 25 |
60 | 21 |
a. Determine the correlation between price and demand. Plot the data in a scatter diagram. Does the relationship seem to be linear?
b. Determine the standard error of estimate.
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Related Book For
Basic Statistics For Business & Economics
ISBN: 9781259268939
6th Canadian Edition
Authors: Douglas A. Lind, William G Marchal, Samuel A. Wathen, Carol Ann Waite
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