A Local Tire Dealer Wants to Predict the Number of Tires

question 57

Short Answer

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 monthly tire sales (in thousands of tires) and monthly advertising expenditures (in thousands of dollars). The simple linear regression equation is ŷ = 3 + 1x. The dealer randomly selects one of the six observations, with a monthly sales value of 8,000 tires and monthly advertising expenditures of $7,000. Calculate the value of the residual for this observation.

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Definitions:

Body Mass Index (BMI)

A measure of body fat based on height and weight that applies to adult men and women.

Overweight

Having more body fat than is optimally healthy, considered as having a body mass index (BMI) over 25.

Obese

A medical condition characterized by excessive body fat accumulation, which poses a risk to health.

Bulimia

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors like vomiting to prevent weight gain.