Regression Analysis
The local grocery store wants to predict its daily sales in dollars.The manager believes that the amount of newspaper advertising significantly affects the store's sales.He randomly selects 7 days of data consisting of daily grocery store sales (in thousands of dollars)and advertising expenditures (in thousands of dollars).The Excel/MegaStat output given above summarizes the results of the regression model.
What is the estimated simple linear regression equation?
Definitions:
Fixed Expenses
Recurring costs that do not fluctuate with the level of production or sales volume, such as lease payments or salaries.
Contribution Margin Percentage
A measure showing what percentage of sales revenue is available to cover fixed costs and contribute to net income, calculated as (Sales - Variable Costs) / Sales.
After-Tax Profit
The profit a company has left after paying all its taxes.
Tax Rate
The proportion of income that the government taxes an individual or business.
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