Consider the following sample regression equation = 150 - 20x, where y is the demand for Product A (in 1,000s) and x is the price of the product (in $). The slope coefficient indicates that if ________.
A) the price of Product A increases by $1, then we predict the demand to decrease 20
B) the price of Product A increases by $1, then we predict the demand to increase by 20
C) the price of Product A increases by $1, then we predict the demand to decrease by 20,000
D) the price of Product A increases by $1, then we predict the demand to increase by 20,000

Question

Consider the following sample regression equation  = 150 - 20x, where y is the demand for Product A (in 1,000s) and x is the price of the product (in $). The slope coefficient indicates that if ________.
A) the price of Product A increases by $1, then we predict the demand to decrease 20 
B) the price of Product A increases by $1, then we predict the demand to increase by 20 
C) the price of Product A increases by $1, then we predict the demand to decrease by 20,000 
D) the price of Product A increases by $1, then we predict the demand to increase by 20,000

Quizplus · Accepted Answer

The Answer of Consider the following sample regression equation  = 150 - 20x, where y is the demand for Product A (in 1,000s) and x is the price of the product (in $). The slope coefficient indicates that if ________.
A) the price of Product A increases by $1, then we predict the demand to decrease 20 
B) the price of Product A increases by $1, then we predict the demand to increase by 20 
C) the price of Product A increases by $1, then we predict the demand to decrease by 20,000 
D) the price of Product A increases by $1, then we predict the demand to increase by 20,000

Consider the Following Sample Regression Equation = 150 -