Handout chapter 11

# Handout chapter 11 - Chapter 11 The marketing manager of a...

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Chapter 11 The marketing manager of a large supermarket chain would like to develop a model for predicting weekly sales of pet food based on the shelf space. A random sample of 9 stores is selected, with the following result: Shelf Space | Sales (Feet) | (\$100) 2 ¦ 3 2 ¦ 4 3 ¦ 3 4 ¦ 5 4 ¦ 6 5 ¦ 7 4 ¦ 8 5 ¦ 10 5 | 12 a. Set up a scatter diagram. b. Use the least-squares method to find the regression coefficients, and plot the regression line. c. Interpret the meaning of the regression coefficients in this problem. d. Compute the standard error of the estimate. e. Compute the coefficient of determination r² and interpret its meaning in this problem. f. At a significance level of .05 can you conclude that Shelf Space is a good predictor of the Sales?

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Y X XY 3 2 6 4 9 4 2 8 4 16 3 3 9 9 9 5 4 20 16 25 6 4 24 16 36 7 5 35 25 49 8 4 32 16 64 10 5 50 25 100 12 5 60 25 144 Total 58 34 244 140 452 X Y 5.0 4.5 4.0 3.5 3.0 2.5 2.0 12 10 8 6 4 2 Scatterplot of Y vs X b. c. The y-intercept (-1.69) would indicate the sales when the Shelf Space is 0. Such a situation seems highly unlikely. Therefore, the y-intercept has no interpretation in this case. The slope (2.15) indicates that the sales increases by 2.15 units or \$215 for one foot increase

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