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Regression Analysis Was Applied Between Demand for a Product (Y) y^\hat { y }

Question 1

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Regression analysis was applied between demand for a product (y) and the price of the product (x) , and the following estimated regression equation was obtained. y^\hat { y } = 120 - 10x

Based on the above estimated regression equation, if price is increased by 2 units, then demand is expected to


A) increase by 120 units.
B) decrease by 100 units.
C) increase by 20 units.
D) decease by 20 units.

Correct Answer:

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