A Local Tire Dealer Wants to Predict the Number of Tires

question 84

Short Answer

A local tire dealer wants to predict the number of tires sold each month. He believes that the number of tires sold is a linear function of the amount of money invested in advertising. He randomly selects 6 months of data consisting of tire sales (in thousands of tires) and advertising expenditures (in thousands of dollars). Based on the data set with 6 observations, the simple linear regression equation of the least squares line is ŷ = 3 + 1x.
∑X = 24
∑X² = 124
∑Y = 42
∑Y² = 338
∑XY = 196
MSE = 4
Using the sums of the squares given above, determine the 90 percent prediction interval for tire sales in a month when the advertising expenditure is $5,000.

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Definitions:

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A steroid hormone that plays a key role in the development of male reproductive tissues and secondary sexual characteristics.

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Actions or behaviors intended to cause harm or discomfort to others.

Valuing Being Right

The importance placed on the need to be correct or to have correct opinions, often at the expense of relationships or social harmony.

Tendency to Conform

The inclination of individuals to align their attitudes, beliefs, or behaviors with those of a group due to real or imagined group pressure.