A Local Tire Dealer Wants to Predict the Number of Tires

question 93

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 monthly tire sales (in thousands of tires) and monthly advertising expenditures (in thousands of dollars). Residuals are calculated for all of the randomly selected six months and ordered from smallest to largest. Determine the normal score for the smallest residual.

---

Definitions:

Filtration Masks

Protective masks designed to filter out harmful particles from the air breathed in by the wearer.

Niche Market

A focused, targetable portion (segment) of a market, characterized by specific and distinct needs or preferences.

Points-Of-Difference

Unique attributes or benefits of a product, service, or brand that set it apart from its competitors in the eyes of the target market.

CVP

Stands for Cost-Volume-Profit analysis, a tool used by businesses to determine how changes in costs and volume affect a company's operating income and net income.