Answer:
b. $1 in price is associated with a decrease of $8,000 in sales
Step-by-step explanation:
Linear function:
A linear function has the following format:
[tex]y = mx + b[/tex]
In which m is the slope, which represents by how much y changes when x changes by 1.
ŷ = 50,000 − 8x
This means that [tex]m = -8[/tex], in thousands of dollars, so when the price x increases by 1, the sales will be decrease by $8,000, and thus, the correct answer is given by option b.
The equation implies that an increase (b) $1 in price is associated with a decrease of $8,000 in sales
The regression equation is given as:
[tex]\^y= 50000 - 8\^x[/tex]
A linear regression equation is represented as:
[tex]\^y= b_o+ b_1\^x[/tex]
Where:
b1 represents the slope or the unit rate of the equation
By comparison:
[tex]b_1 =-8[/tex]
Because the value of b1 is negative;
Then it means that, the unit rate represents a decrement
Hence, the equation implies that (b) $1 in price is associated with a decrease of $8,000 in sales
Read more about regression equations at:
https://brainly.com/question/25987747
