national pharmacy chain. Linear regression produced the equation s = 25.4a + 4.5, with r = 0.57. A local pharmacy in the chain had sales of $875 000 with a flier advertising budget of $50 000. The store manager was concerned about the accuracy of the model.
national pharmacy chain. Linear regression produced the equation s = 25.4a + 4.5, with r = 0.57. A local pharmacy in the chain had sales of $875 000 with a flier advertising budget of $50 000. The store manager was concerned about the accuracy of the model.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:A market researcher found a correlation
between advertising budgets for fliers (a,
in thousands of dollars) and sales (s, in
thousands of dollars) at local stores of a
national pharmacy chain. Linear regression
produced the equation s = 25.4a + 4.5,
with r = 0.57. A local pharmacy in the
chain had sales of $875 000 with a flier
advertising budget of $50 000. The store
manager was concerned about the
accuracy of the model.
a)
The manager should not be
concerned because the model
predicts this level of sales.
b)
The correlation coefficient
indicates a moderate correlation,
so variation should be expected.
c)
The correlation coefficient
indicates a moderate correlation,
so all predictions with the model
will be inaccurate.
d)
The manager should be concerned

Transcribed Image Text:between advertising budgets for fliers (a,
in thousands of dollars) and sales (s, in
thousands of dollars) at local stores of a
national pharmacy chain. Linear regression
produced the equation s = 25.4a + 4.5,
with r = 0.57. A local pharmacy in the
chain had sales of $875 000 with a flier
advertising budget of $50 000. The store
manager was concerned about the
accuracy of the model.
a)
The manager should not be
concerned because the model
predicts this level of sales.
b)
The correlation coefficient
indicates a moderate correlation,
so variation should be expected.
c)
The correlation coefficient
indicates a moderate correlation,
so all predictions with the model
will be inaccurate.
d)
The manager should be concerned
about the accuracy of the model.
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