A Local Tire Dealer Wants to Predict the Number of Tires

question 121

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. Find the estimated slope.

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Definitions:

Mercosur

A South American trade bloc established to promote free trade and fluid movement of goods, people, and currency among its member countries.

Trans-Pacific Partnership

A trade agreement among multiple Pacific Rim countries aimed at deepening economic ties, reducing tariffs, and fostering trade to boost growth.

Infant Industry Argument

A protective economic theory suggesting that emerging domestic industries should be shielded from foreign competition until they become competitive.

Tariff

A tax imposed by a government on imported goods to protect domestic industries or raise revenue.