Question: For a store we know the data concerning the correlation between Sales Values (mill LCU) and the Profit (mill. LCU) registered for the first 9

  1. For a store we know the data concerning the correlation between Sales Values (mill LCU) and the Profit (mill. LCU) registered for the first 9 months of the year 2019. The simple regression poutput partial results is presented in table 1.

Table 1. Simple regression output partial results

ANOVA
df SS MS F Significance F
Regression 1 0,03045 ........... ............ 0,0000779643
Residual ... ............. 0,000453
Total 8 .............
Coefficients Standard Error t Stat P-value
Intercept 0,078438 ............. ............ 0,001719
Sales value 0,011712 0,001429 ............. 7,8E-05

Knowing that the average sales value founded was10 mill. LCU/month, the requests are:

  1. Write the regression equation and comment the regression coefficient. Calculate at least one PREDICTED Dependent variable value for one month, at your choice between years January and September.
  2. Analyse the validity of the model and show, step by step the calculation algorithm to decide upon the validity of the model
  3. Conduct the t test for a risk to be wrong in charactering this correlation also for the next months of the year of 5%. Describe the significance of the regression coefficient.
  4. Calculate and comment the confidence class as the result of the estimation method.
  5. Characterize the correlation between the variables registered for the first 9 months of the year

Suggestion: to answer all the above you need to calculate first the missing indicators (informations) of the output.

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