Quantitative Methods for Business (BBA 315)

Homework Assignment # 1 on Simple Regression

Name___________________________ Dr. Ali Ahmadi

The following are data ( on a sample size of 10) for the relation between the sales of a company of pizza parlor chain stores that are located in the different University campuses where Xi is the size of student population in each university and Yi is the quarterly sales of each store. We want to see if there is a linear equation that could the estimate the relation between the quarterly sales of a store and the Size of student population.

Restaurant i	Student Population (1000s) Xi	Quarterly Sales ($1000s) Yi
1	2	58
2	6	105
3	8	88
4	8	118
5	12	117
6	16	137
7	20	157
8	20	169
9	22	149
10	26	202

Using the Formula sheet, Perform the Following: (a).Draw the scatter diagram. (b). Find the regression equation. (c). Calculate the Coefficient of Determination (R²) ; what does its value say about the Goodness of the fit? Why? SHOW YOUR WORK AND CALCULATIONS!!