Regression Analysis the Local Grocery Store Wants to Predict

question 22

Multiple Choice

Regression Analysis The local grocery store wants to predict the daily sales in dollars.The manager believes that the amount of newspaper advertising significantly affects the store 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/Mega-Stat output given above summarizes the results of the regression model. Determine a 95% confidence interval estimate of the daily average store sales based on $3000 advertising expenditures? The distance value for this particular prediction is reported as .164.

• A)$64,496 to $102.170
• B)$33,108 to $133,558
• C)$71,324 to $95,342
• D)$51,314 to $115,353
• E)$42,851 to $83,816

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Definitions:

Income Yield

The income returned on an investment, usually expressed as a percentage of the amount invested.

Cumulative Gain

The total amount of profit gained over a period of time from an investment or series of investments.

Semi-Annual Dividend

A payment made to shareholders that is distributed twice a year from a company's earnings.

Total Return

The overall gain or loss on an investment over a specified time period, including interest, dividends, and capital gains.