A Large Department Store Has Collected the Following Monthly Data

question 123

Essay

A large department store has collected the following monthly data on lost sales revenue due to theft and the number of security guard hours on duty: (a)Determine the least squares regression equation.
(b)Using the results of part (a),find the estimated lost sales revenues if the total number of security guard hours is 800.
(c)Calculate the coefficient of correlation.
(d)Calculate the coefficient of determination.

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Definitions:

Private Goods

Goods that are excludable and rivalrous in consumption, meaning their use by one individual prevents use by another.

Normal Goods

Goods for which demand increases as the income of the buyer increases and decreases as the income of the buyer decreases, showing a positive correlation between income changes and demand.

Overallocation

The process of assigning more resources to a project or sector than is available or sustainable, leading to inefficiencies.

Underallocation

A situation where resources are not distributed efficiently, resulting in potential benefits not being fully realized.