Orange Juice Sales: Sales of orange juice, at a store, has been tracked for 20 w
ID: 3049631 • Letter: O
Question
Orange Juice Sales: Sales of orange juice, at a store, has been tracked for 20 weeks. You are given the assignment of finding out the price sensitivity of orange juice or the relationship between the price of the orange juice and the amount of sales of orange juice.
1) What % of variation in sales is explained by variations in price (round up to 2 decimal points)?
2) If the price of orange juice is $0.60, how many units can be expected to be sold in that week (round up to 2 decimal points)?
3) How much is the error/residual (actual sales – predicted sales)?
4) We are 95% confident that for $1 Increase in price, sales would go down?
a) By 5.19 units
b) Between 10.16 units and 0.20 units
Store Week Price Sales Sales 2.00 1.00 0.31 5.19 4.74 3.19 3.61 5.19 4.38 4.64 y-5.1839" 66073 2.00 2.00 2.00 2.00 3.00 4.00 5.00 0.65 0.42 0.66 0.47 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 2.00 4.31 S.10 2.00 2.00 2.00 2.00 0.44 0.56 0.53 3.73 0.00 0.10 0.20 0.30 040050 0.0 0.70 0.49 17.00 18.00 19.00 20.00 2.00 2.00 SUMMARY OUTPUT ression Statistics 2.00 Multiple R R Square Adjusted R Square Standard Error 0.458276828 0.210017651 0.166129743 1.109544189 ANOVA 1 5.891150547 5.891150547 4.78531923 0.042141248 18 22.15958953 1.231088307 19 28.05074007 Total t Stat P-volue Lower 95% Upper 95% Lower 95.0% -95.0% Coefficients Standard Error 6.607269937 1190418635 5.550375089 2.8667E-05 4.106293189 9.10824668 4.106293189 9.108246684 .5.18390415 2.369744399-2.187537252 0.04214125-10.16255239-0.20525591-10.16255239-0205255912Explanation / Answer
Sol:
sales=-5.19(price)+6.61
Solution1:
R sq=0.2100
=0.2100*100
=21%
21 % varaiation in sales is explained by price
Solution2:
price=0.60
Regression eq is
sales=6.607269937-5.18390415(price)
substitute price=0.60
=6.607269937-5.18390415(0.60)
=3.50
ANSWER:3.5
3) How much is the error/residual (actual sales – predicted sales
Residual =actual Y-predicted y
=3.09-3.50
residual =-0.41
Solution4:
95% confidence interval for slope is
=-10.16 and -0.21
Between 10.16 units and 0.20 units
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