I’m studying for my Statistics class and don’t understand how to answer this. Can you help me study?
A golf club manufacturer is trying to determine how the price of a set of clubs affects the demand for clubs. The attached file contains the price of a set of clubs and the monthly sales.
- 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?
- Interpret your best-fitting equation.
- Using the best-fitting equation, predict sales during a month in which the price is $470.
Provide a short description of the tools used and why this was the “best-fitting equation”