Correlations/Linear & Multiple Regression

A golf club manufacturer is trying to determine how the price of a set of clubs affects the demand for clubs. attachment contains the price of a set of clubs and the monthly sales.  

 

a. Assume the only factor influencing monthly sales is price. Fit the following three curves to these data: linear (Y = a + bX), exponential (Y = abX), and multiplicative (Y = aXb). Which equation fits the data best? 


b. Interpret your best-fitting equation.  


c. Using the best-fitting equation, predict sales during a month in which the price is $470.

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