Question

The marketing manger of a large supermarket chain would like to determine the
effect of shelf space on the sales of pet food. A random sample of 12 equal-sized stores is selected with
the following results:
Store
1 2 3 4
6 7 8 9 10 11 12
Weekly Sales, Y (hundreds of $) 1.6 2.2 1.4 1.9 2.4 2.6 2.3 2.7 2.8 2.6 2.9 3.1
Shelf Space, X (feet)
5 5 5 10 10 10 15 15 15 20 20 20
Calculation shows that:
ΣΧ = 150, ΣΥ = 28.5
ΣΧ2 = 2250, ΣΥ2 = 70.69
ΣΧΥ = 384
a. Assuming a linear relationship, use the least-squares method to find the best-fitting regression
equation and hence compute the residual for store 6. What percentage of the total variation in
sales is explained by shelf space?
b. Set up a 95% confidence interval estimate of the average weekly sales for all stores that have 10
feet of shelf space for pet food.​

Answer 1

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