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SCENARIO 13-2
a Candy Bar Manufacturer Is Interested in Trying

Question 196

Multiple Choice

SCENARIO 13-2
A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of
their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at
different prices. Using candy bar sales as the dependent variable, the company will conduct a simple
linear regression on the data below:  City  Price ($)  Sales  River Falls 1.30100 Hudson 1.6090 Ellsworth 1.8090 Prescott 2.0040 Rock Elm 2.4038 Stillwater 2.9032\begin{array}{ccc}\underline{\text { City }} &\underline{ \text { Price (\$) }} &\underline{\text { Sales }}\\\text { River Falls } & 1.30 & 100 \\\text { Hudson } & 1.60 & 90 \\\text { Ellsworth } & 1.80 & 90 \\\text { Prescott } & 2.00 & 40 \\\text { Rock Elm } & 2.40 & 38 \\\text { Stillwater } & 2.90 & 32\end{array}

-Referring to Scenario 13-2, what is Σ(XXˉ) 2\Sigma ( X - \bar { X } ) ^ { 2 } for these data?


A) 0
B) 1.66
C) 2.54
D) 25.66

Correct Answer:

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