Question 1: Problem solving (12 Marks) The Production Cost/canister ($) and the Weekly Sales Volume (number of canisters) of a variety of olive oil were recorded in a sample of 6 oil trading companies (table below): Oil Trading Company 3 4 5 6 Production Cost /canister ($) 62 55 50 82 67 74 Weekly Sales Volume 560 520 600 380 450 490 2 Question 1: Problem solving (12 Marks) 1. Construct a simple regression model to predict the Weekly Sales Volume by Production Cost/canister. (4 Marks) (X;-)) (X; -X) (Y: -Y) (X; -X)(Y- Y) Xi 62 55 50 82 67 74 X= Yi 560 520 600 380 450 490 Y = Sum = Sum= 2. Find the predicted Weekly Sales Volume on that olive oil variety in an oil trading company where the Production Cost is $ 85/canister then $ 90/canister . (2 Marks) 3. Compute r2 and r for this model, and interpret their values in this case. (4 Marks) , (Y; -Y) (Y; Y)2 (Y - Y) (Y - )? || - Y) (Y, - Y)? Sum = Sum = Sum = 4. Calculate the prediction error for the Weekly Sales Volume of 600 and 450 canisters based on the regression model constructed previously. (2 Marks)