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Andrew Vazsonyi is the manager of the Spendwise supermarket chain. He would like to be able to forecast paperback book sales (books per week) based on the amount of shelf display space (feet) provided. Andrew gathers data for a sample of 11 weeks, as shown in Table P-6.
a. Plot a scatter diagram.
b. What kind of relationship exists between these two variables?
c. Compute the correlation coefficient.
d. Determine the least squares line.
e. Test for the significance of the slope coefficient at the .10 significance level. Is the correlation significant? Explain.
f. Plot the residuals versus the fitted values. Based on this plot, is the simple linear regression model appropriate for these data?
g. Forecast the paperback book sales for a week during which four feet of shelf space is provided. |
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