The manager of Colonial Furniture has been reviewing weekly advertising expenditures. During the past 6 months, all advertisements for the store have appeared in the local newspaper. The number of ads per week has varied from one to seven. The store’s sales staff has been tracking the number of customers who enter the store each week. The number of ads and the number of customers per week for the past 26 weeks were recorded.
a. Determine the sample regression line.
b. Interpret the coefficients.
c. Can the manager infer that the larger the number of ads, the larger the number of customers?
d. Find and interpret the coefficient of determination.
e. In your opinion, is it a worthwhile exercise to use the regression equation to predict the number of customers who will enter the store, given that Colonial intends to advertise five times in the newspaper? If so, find a 95% prediction interval. If not, explain why not.

  • CreatedFebruary 03, 2015
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