The Marketing Manager of a Large Supermarket Chain Would Like

question 77

Essay

The marketing manager of a large supermarket chain would like to determine the effect of shelf space (in feet) on the weekly sales of international food (in hundreds of dollars). A random sample of 12 equal-sized stores is selected, with the following results:
-(A) Draw a scatterplot,of the data and comment on the relationship between shelf space and weekly sales.
(B) Run a regression on this data set and report the results.
(C) What are the least squares regression coefficients of the Y-intercept (a) and slope (b)?
(D) Interpret the meaning of the slope
b.
(E) Predict the average weekly sales (in hundreds of dollars) of international food for stores with 13 feet of shelf space for international food.
(F) Why would it not be appropriate to predict the average weekly sales (in hundreds of dollars) of international food for stores with 35 feet of shelf space for international food?
(G) Identify the coefficient of determination, , and interpret its meaning.
(H) Determine the standard error of the estimate. What does it represent?
(I) Draw a scatterplot of residuals versus fitted values. What does this graph indicate?

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Definitions:

Merchandise Suppliers

Companies or individuals that provide products for sale to retailers, often involving wholesale transactions.

Long-Term Debt

Long-Term Debt comprises loans and financial obligations lasting more than one year, used by businesses to finance long-term investments or projects.

Inflow Of Cash

Money or cash equivalents coming into a business, typically from operations, investments, or financing activities.

Bond Payable

A financial instrument representing a loan made by an investor to a borrower, typically corporate or governmental, with a promise to pay back the principal along with interest on specified dates.