Assignment # 3 Pricing

Assignment # 3 Pricing

Answer No. 1

Quantity demanded = a + b (Price)

From the above graphical representation, it can be observed that as the price of the Bluebird Potato Chips is increasing, the quantity demanded of the Bluebird Potato Chips is decreasing which represent negative trend. Keeping this in view it can be said that the data follow the Law of Demand.

Answer No. 2

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.88

R Square

0.78

Adjusted R Square

0.77

Standard Error

29991.82

Observations

104

From the above model summary table, it can be observed that the value of R-square is 0.78 and adjusted R-square is 77%, reflecting strong relationship of between price and ...