A company runs a regression analysis to identify the impact of volume on demand, which can be shown as an equation y = 50x + 10. Which volume is needed to produce a demand of 10,510?
To solve this regression problem, substitute the given demand value into the equation and solve for x. The equation is y = 50x + 10, and the desired demand is 10,510. Replacing y with 10,510 gives 10,510 = 50x + 10. Subtracting 10 from both sides gives 10,500 = 50x. Dividing both sides by 50 gives x = 210. This means a volume of 210 is required to produce a demand of 10,510 under the linear relationship described by the equation. Regression equations are often used in forecasting and planning because they allow analysts to estimate one value from another. In this case, the independent variable is volume and the dependent variable is demand. The correct value must satisfy the equation exactly, and only 210 does so. The other options do not produce the required result when substituted into the equation. Therefore, the correct answer is 210.
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