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Consider the demand for Fresh Detergent in a future sales period when Enterprise Industries' price for Fresh will be x₁ = 3.80, the average price of competitors' similar detergents will be x2 = 4.09, and Enterprise Industries' advertising expenditure for Fresh will be x3 = 7.00. A 95 percent prediction interval for this demand is given on the following JMP output: 31 Predicted Demand 8.1673257931 Lower 95% Mean Demand 7.7348475303 Upper 95% Mean Demand 8.5998040558 StdErr Indiv Demand .2103975037 Lower 95% Indiv Demand 6.6317212018 Upper 95% Indiv Demand 9.7029303843 (a) Find and report the 95 percent prediction interval on the output. If Enterprise Industries plans to have in inventory the number of bottles implied by the upper limit of this interval, it can be very confident that it will have enough bottles to meet demand for Fresh in the future sales period. How many bottles is this? If we multiply the number of bottles implied by the lower limit of the prediction interval by the price of Fresh ($3.80), we can be very confident that the resulting dollar amount will be the minimum revenue from Fresh in the future sales period. What is this dollar amount? (Round 95% PI to 4 decimal places and dollar amount and Level of inventory needed to the nearest whole number.)

Consider the demand for Fresh Detergent in a future sales period when Enterprise Industries' price for Fresh will be x₁ = 3.80, the average price of competitors' similar detergents will be x2 = 4.09, and Enterprise Industries' advertising expenditure for Fresh will be x3 = 7.00. A 95 percent prediction interval for this demand is given on the following JMP output: 31 Predicted Demand 8.1673257931 Lower 95% Mean Demand 7.7348475303 Upper 95% Mean Demand 8.5998040558 StdErr Indiv Demand .2103975037 Lower 95% Indiv Demand 6.6317212018 Upper 95% Indiv Demand 9.7029303843 (a) Find and report the 95 percent prediction interval on the output. If Enterprise Industries plans to have in inventory the number of bottles implied by the upper limit of this interval, it can be very confident that it will have enough bottles to meet demand for Fresh in the future sales period. How many bottles is this? If we multiply the number of bottles implied by the lower limit of the prediction interval by the price of Fresh ($3.80), we can be very confident that the resulting dollar amount will be the minimum revenue from Fresh in the future sales period. What is this dollar amount? (Round 95% PI to 4 decimal places and dollar amount and Level of inventory needed to the nearest whole number.)

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 2AGP
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Consider the demand for Fresh Detergent in a future sales period when Enterprise Industries' price for Fresh will be x₁ = 3.80, the average price of competitors' similar detergents will be x2 = 4.09, and Enterprise Industries' advertising expenditure for Fresh will be x3 = 7.00. A 95 percent prediction interval for this demand is given on the following JMP output: 31 Predicted Demand 8.1673257931 95% PI [ Level of inventory needed = Lower dollar amount = Lower 95% Mean Demand 7.7348475303 99% PI[ Upper 95% Mean Demand 8.5998040558 StdErr Indiv Demand .2103975037 (a) Find and report the 95 percent prediction interval on the output. If Enterprise Industries plans to have in inventory the number of bottles implied by the upper limit of this interval, it can be very confident that it will have enough bottles to meet demand for Fresh in the future sales period. How many bottles is this? If we multiply the number of bottles implied by the lower limit of the prediction interval by the price of Fresh ($3.80), we can be very confident that the resulting dollar amount will be the minimum revenue from Fresh in the future sales period. What is this dollar amount? (Round 95% Pl to 4 decimal places and dollar amount and Level of inventory needed to the nearest whole number.) bottles. Lower 95% Indiv Demand 6.6317212018 Upper 95% Indiv Demand 9.7029303843 (b) Calculate a 99 percent prediction interval for the demand for Fresh in the future sales period. Hint: n = 30 and s= 0.717. Optional technical note needed. The distance value equals Leverage. (Round your answers to 4 decimal places.)
Transcribed Image Text:Consider the demand for Fresh Detergent in a future sales period when Enterprise Industries' price for Fresh will be x₁ = 3.80, the average price of competitors' similar detergents will be x2 = 4.09, and Enterprise Industries' advertising expenditure for Fresh will be x3 = 7.00. A 95 percent prediction interval for this demand is given on the following JMP output: 31 Predicted Demand 8.1673257931 95% PI [ Level of inventory needed = Lower dollar amount = Lower 95% Mean Demand 7.7348475303 99% PI[ Upper 95% Mean Demand 8.5998040558 StdErr Indiv Demand .2103975037 (a) Find and report the 95 percent prediction interval on the output. If Enterprise Industries plans to have in inventory the number of bottles implied by the upper limit of this interval, it can be very confident that it will have enough bottles to meet demand for Fresh in the future sales period. How many bottles is this? If we multiply the number of bottles implied by the lower limit of the prediction interval by the price of Fresh ($3.80), we can be very confident that the resulting dollar amount will be the minimum revenue from Fresh in the future sales period. What is this dollar amount? (Round 95% Pl to 4 decimal places and dollar amount and Level of inventory needed to the nearest whole number.) bottles. Lower 95% Indiv Demand 6.6317212018 Upper 95% Indiv Demand 9.7029303843 (b) Calculate a 99 percent prediction interval for the demand for Fresh in the future sales period. Hint: n = 30 and s= 0.717. Optional technical note needed. The distance value equals Leverage. (Round your answers to 4 decimal places.)
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