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Michael Latip Professor Yingying BUAD 310 Case Study 9th December 2012 Hi st ogr a m of pa ge cost Hi st ogr am of pe r cmal e 14 10 12 8 Fr e q u e

2e. Using this model with ALL the variables, provide a point estimate and an appropriate 95% interval to the retail clothing company for the amount that they should expect to pay for a full-page ad in a magazine with a projected audience of 2,125,000 readers, 45 percent of which are male, with a median income of $50,000. Include notation and units. Interpret these results.

Michael Latip Professor Yingying BUAD 310 Case Study 9 th December 2012 100000 80000 60000 40000 20000 14 12 10 8 6 4 2 0 pagecost Frequency Histogram of pagecost 80 60 40 20 10 8 6 4 2 0 percmale Frequency Histogram of percmale (Histogram of page cost) (Histogram of perc) 16000 12000 8000 4000 0 18 16 14 12 10 8 6 4 2 0 circ Frequency Histogram of circ 35000 30000 25000 20000 15000 14 12 10 8 6 4 2 0 medianincome Frequency Histogram of medianincome (Histogram of circ) (Histogram of medianincome) 1a) The histograms for the page cost of an ad and the circulation are skewed to the right, which means the majority of the cost and the majority of the ad circulation fall below the mean. The distribution of the medium income is approximately normal as it follows a nice bell shaped curve. Bi modal distribution with no apparent skewness, the distribution of the percentage of men is not normal because there is a significant amount of percentages on both the left and the right side of the mean
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20000 15000 10000 5000 0 100000 80000 60000 40000 20000 0 circ pagecost Scatterplot of pagecost vs circ 40000 35000 30000 25000 20000 15000 100000 80000 60000 40000 20000 0 medianincome pagecost Scatterplot of pagecost vs medianincome 90 80 70 60 50 40 30 20 10 0 100000 80000 60000 40000 20000 0 percmale pagecost Scatterplot of pagecost vs percmale 1b) The relationship between page cost and circulation appears to have a curved relationship, not a linear one. There appear to be two possible outliers but the overall plot has a slight curve shape. There appears to be no strong linear relationship between page cost and the percent of male readers. The plot is rather scattered showing no evidence of a strong relationship. There also appears to be no strong linear relationship between page cost and median income. The plot looks as if it could possibly have a slight curved relationship but there is no strong relationship apparent.
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