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A retailer wanted to estimate the monthly fixed and variable selling expenses. As a first step she collected data from the past 8 months and recorded...

A retailer wanted to estimate the monthly fixed and variable selling expenses. As a first step she collected data from the past 8 months and recorded it in Xr04-57. The total selling expenses in ($thousand) and the total sales in ($thousands) are shown below:




Total Sales


Selling Expenses




20


14




40


16




60


18




50


17




50


18




55


18




60


18




70


20


a) Compute the covariance and the coefficient of determination and describe what these statistics mean.
b) Determine the least squares line and use it to produce the estimates the retailer wants.

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Top Answer

HI Please find... View the full answer

8414255.xlsx

sales(X)
20
40
60
50
50
55
60
70
50.625 expenses (Y)
14
16
18
17
18
18
18
20 (x-xmean )*(y-ymean)
103.359375
14.609375
5.859375
0.234375
-0.390625
2.734375
5.859375
50.859375 17.375
22.890625...

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