Typically, the sales volume declines with an increase of a product price. It has been observed, however, that for some luxury goods the sales volume may increase when the price increases. The following scatterplot illustrates this rather unusual relationship. Using the cubic regression equation, predict the sales if the luxury good is priced at $100.
A) 1171.85
B) 1133.10
C) 1106.61
D) 1092.91

Question

Typically, the sales volume declines with an increase of a product price. It has been observed, however, that for some luxury goods the sales volume may increase when the price increases. The following scatterplot illustrates this rather unusual relationship.  Using the cubic regression equation, predict the sales if the luxury good is priced at $100.
A) 1171.85 
B) 1133.10 
C) 1106.61 
D) 1092.91

Quizplus · Accepted Answer

The Answer of Typically, the sales volume declines with an increase of a product price. It has been observed, however, that for some luxury goods the sales volume may increase when the price increases. The following scatterplot illustrates this rather unusual relationship.  Using the cubic regression equation, predict the sales if the luxury good is priced at $100.
A) 1171.85 
B) 1133.10 
C) 1106.61 
D) 1092.91

Typically, the Sales Volume Declines with an Increase of a Product