The Owner of a Retail Store Randomly Selected the Following

question 27

Essay

The owner of a retail store randomly selected the following weekly data on profits and advertising cost.

a.Write down the appropriate linear relationship between advertising cost and profits. Which is the dependent variable? Which is the independent variable?
b.Calculate the least squares estimated regression line.
c.Predict the profits for a week when $200 is spent on advertising.
d.At 95% confidence, test to determine if the relationship between advertising costs and profits is statistically significant.
e.Calculate the coefficient of determination.

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Definitions:

Confidence Interval

A range of values used to estimate the true value of a population parameter, calculated from a given set of sample data.

Daily Income

The amount of money earned by an individual or entity in a single day.

Parking Fees

Parking fees are charges imposed for the use of parking facilities, aiming to regulate parking spaces and generate revenue for maintenance or other municipal needs.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a certain degree of confidence.