Below You Are Given Information on a Woman's Age and Her

question 91

Essay

Below you are given information on a woman's age and her annual expenditure on purchase of books.
$\begin{array}{ll}\text { Age }&\text { Annual Expenditure \$) }\\18 & 210 \\22 & 180 \\21 & 220 \\28 & 280\end{array}$
a. Develop the least squares regression equation.
b. Compute the coefficient of determination.
c. Use a t test to determine whether the slope is significantly different from zero. Let α = 0.05.
d. At 95% confidence, perform an F test and determine whether or not the model is significant.

---

Definitions:

Sales Forecast

An estimate of sales for a future period, often used for planning and managing business operations.

Master Budget

A comprehensive financial planning document that consolidates all individual budgets within an organization, projecting its overall financial activities.

Firm Forecast

A prediction or estimation about future business conditions that is relatively certain and stable.

Finished Goods Units

Products that have completed the manufacturing process and are ready to be sold.