A company wants to base the price of its
product according to the demand and expenses for
the product. It takes a poll of several of its current
retailers to find out how many widgets they would
buy at different wholesale prices. The results are
shown in the table.
Quantity Retailers
Wholesale Would Purchase
Price ($) (p) (in thousands) (q)
15.25 3,456
15.50 3,005
15.75
2,546
16.00 2.188
16.25 1,678
16.50 1,290
16.75
889
17.00
310
The company wants to use linear regression
to create a demand function.