A golf club manufacturer is trying to determine how the price of a set of clubs

affects the demand for clubs. Below contains the price of a set of clubs and the monthly sales.

a) Assume the only factor influencing monthly sales is price. Fit the following

three curves to these data: linear (Y=a+bX), exponential (Y=ab^X), and multiplicative

(Y=aX^b). Which equation fits the data best based on R^2? (You should also comment on the residual plot of each model.)

b) Interpret your best-fitting equation

Price Demand

$400 20,000

$420 19,000

$440 17,000

$460 16,000

$500 14,000

$380 22,000

$290 31,000

$340 26,000

$220 41,000

$700 6,000