A Local Tire Dealer Wants to Predict the Number of Tires

question 183

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 equation of the least squares line is $\hat { y }$ = 3 + 1x. $\sum X$ = 24 $\sum X ^ { 2 }$ = 124 $\sum Y$ = 42 $\sum Y ^ { 2 }$ = 338 $\sum X Y$ = 196
MSE = 4
-Using the sums of the squares given above,determine the 90% prediction interval for an individual month's tire sales when the advertising expenditure is $5000.

---

Definitions:

Critical Thinking

Critical thinking is the intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information gathered from observation, experience, reflection, reasoning, or communication.

Cramming

A study strategy involving intensive, short-term study sessions typically used in attempts to memorize large amounts of information quickly before an exam.

Introspection

Examination or observation of one's own mental and emotional processes.

Inner Sensations

Inner sensations refer to feelings or perceptions that occur within an individual's body, such as hunger, pain, or fatigue, which are not directly observable by others.