9. (TCO E) McCave Development Enterprises is considering whether to build a shopping mall in Statesville. The manager wants you to analyze the relationship between mall size and the rate of return on invested capital. You select a random sample of 16 cities similar to Statesville in demographic and economic characteristics and collect the following data on FOOTAGE (in 10,000 square feet) and RETURN (rate of return as a %).

a. Analyze the above output to determine the regression equation.

b. Find and interpret β ˆ 1 in the context of this problem.

c. Find and interpret the coefficient of determination (r-squared).

d. Find and interpret coefficient of correlation.

e. Does the data provide significant evidence (= .05) that Footage can be used to predict Return? Test the utility of this model using a two-tailed test. Find the observed p-value and interpret.

f. Find the 95% confidence interval for the mean rate of return on capital investment for malls that have square footage of 150,000. Interpret this interval.

g. Find the 95% prediction interval for the rate of return on capital investment for a mall that has square footage of 150,000. Interpret this interval.

h. What can we say about the rate of return on capital investment for a mall that has square footage of 75,000?