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A Local Tire Dealer Wants to Predict the Number of Tires

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Essay

A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He 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. A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He 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.   Determine the value of the estimated y-intercept. Determine the value of the estimated y-intercept.


Definitions:

Population Mean

The average value of all the data points in a population, representing the central tendency of the dataset.

Stratified Sampling

A sampling method that divides the population into smaller groups, or strata, based on shared attributes or characteristics before sampling to ensure a more representative sample.

Sampling Method

A technique used in statistics to select a subset of individuals from a population to estimate characteristics of the whole population.

Consumer Products

Goods sold directly to the consumer for personal, family, or household use, as opposed to products intended for industrial or commercial use.

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