A Local Tire Dealer Wants to Predict the Number of Tires

question 106

Essay

A local tire dealer wants to predict the number of tires sold each month.The dealer believes that the number of tires sold is a linear function of the amount of money invested in advertising.The dealer 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 model yielded the following results. $\sum X$ = 24 $\sum X ^ { 2 }$ = 124 $\sum Y$ = 42 $\sum Y ^ { 2 }$ = 338 $\sum X Y$ = 196
-Find the estimated slope.

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Definitions:

Replacement Cost

The cost to replace an asset at its current market price, often used in insurance and accounting.

Inventory

The total amount of goods or materials a company has in stock for sale or production.

LIFO Method

Last In, First Out method; an inventory valuation method where the last items added to inventory are assumed to be sold first.