What happens when there are many competitors? Think about it, the line of best fit will go down and down and down, eventually reaching a negative value for price. Is negative price even possible?
Of course not. Therefore, this line of best fit can not be used to approximate the price when the number of customers is high.
(after around 10 number of competitors, this line reaches a negative value for price)
What happens when there are many competitors? Think about it, the line of best fit will go down and down and down, eventually reaching a negative value for price. Is negative price even possible?
Of course not. Therefore, this line of best fit can not be used to approximate the price when the number of customers is high.
(after around 10 number of competitors, this line reaches a negative value for price)