Regression Analysis

Briefs

A store is attempting to establish pricing but is uncertain about the expected demand. The store can test different price points to observe sales performance. For instance, setting the price at $30 results in the sale of 75 units, while a price of $10 leads to a demand of 200 units. The store seeks to avoid further experimentation with pricing and inquires about the potential sales volume for $15. Regression analysis provides a solution to this inquiry.