Law of Supply: You will need to use software toanswer these questions.
The Law of Supply states that an increase in price willresult in an increase in the quantity supplied (assuming all otherfactors remain unchanged). Below is the scatterplot, regressionline, and corresponding data for price (x) -vs- quantitysupplied (y).
| Â Â Â Â Â Â Â Â Â | | index | Price(x) | Supply (y) | | 1 | 3.00 | 324 | | 2 | 4.00 | 254 | | 3 | 4.25 | 557 | | 4 | 4.75 | 355 | | 5 | 5.00 | 385 | | 6 | 5.00 | 360 | | 7 | 6.50 | 780 | | 8 | 6.75 | 672 | | 9 | 8.00 | 884 | | 10 | 8.00 | 1020 | | 11 | 9.50 | 1069 | | 12 | 10.00 | 928 | |
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You should be able to copy and paste the data by highlightingthe entire table.
Answer the following questions regarding the relationship.
(a) Using all 12 data pairs for x and y,calculate the correlation coefficient. Round your answer to3 decimal places.
r =
(b) Is there a significant linear correlation between thesevariables?
YesNo   Â
(c) Use software to find the regression equation. What is the slopeand y-intercept? Round each answer to one decimalplace.
| slope | Â Â Â Â | |
| y-intercept | Â Â Â Â | |
(d) Use the regression equation to estimate the quantity suppliedif the price is set at $5.00. Round your answer to thenearest whole number.
Å· =Â Â units
