Executives at the same highend specialty supermarket in Exercise 35 are trying to determine the best location
Question:
Executives at the same highend specialty supermarket in Exercise 35 are trying to determine the best location for a new store. They believe that sales are also related to the total number of housing units in the towns. Based on census data, they would like to develop a model to describe this relationship.
a) Examine a scatterplot and describe the general relationship between Sales and Housing Units in the town.
b) Do you think a linear model is appropriate?
c) The marketing manager fit the regression line. What is the equation of that line?
d) Using this model, predict the annual sales of a supermarket of this type in a town that has 100,000 housing units.
e) Do you have any reservations about the prediction you found in (d)? Explain.
Step by Step Answer:
Business Statistics
ISBN: 9780133899122
3rd Canadian Edition
Authors: Norean D. Sharpe, Richard D. De Veaux, Paul F. Velleman, David Wright