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. For which of the following prices do sales predicted by the quadratic regression equation reach their minimum?
A) 106.33
B) 1157.16
C) 100.41
D) 1166.64

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.  For which of the following prices do sales predicted by the quadratic regression equation reach their minimum?
A) 106.33 
B) 1157.16 
C) 100.41 
D) 1166.64

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.  For which of the following prices do sales predicted by the quadratic regression equation reach their minimum?
A) 106.33 
B) 1157.16 
C) 100.41 
D) 1166.64

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