An economist believes that price, x, (in dollars) is the biggest factor affecting quantity sold, y. To support his argument, he collected data on price and quantity sold from a sample of 29 stores, selling the same product, and generated the regression output in Excel. The regression equation is reported as y = and the correlation coefficient r = - 9.45x + 20.86 0.333. What proportion of the variation in quantity sold y can be explained by the variation in price?

An economist believes that price, x, (in dollars) is the biggest factor affecting quantity sold, y. To support his argument, he collected data on price and quantity sold from a sample of 29 stores, selling the same product, and generated the regression output in Excel. The regression equation is reported as y = and the correlation coefficient r = - 9.45x + 20.86 0.333. What proportion of the variation in quantity sold y can be explained by the variation in price?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 4E

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