Observations are taken on sales of a certain mountain bike in 30 sporting goods stores. The regression model was Y = total sales (thousands of dollars), X1 = display floor space (square meters), X2 = competitors’ advertising expenditures (thousands of dollars), X3 = advertised price (dollars per unit). Predictor Coefficient Intercept 1,209.14 FloorSpace 12.98 CompetingAds −6.856 Price −0.1473 Make a prediction for Sales when FloorSpace = 81, CompetingAds = 103, and Price = 1,317. (Enter your answer in thousands. Round your answer to 2 decimal places.)
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Observations are taken on sales of a certain mountain bike in 30 sporting goods stores. The regression model was Y = total sales (thousands of dollars), X1 = display floor space (square meters), X2 = competitors’ advertising expenditures (thousands of dollars), X3 = advertised price (dollars per unit).
| Predictor | Coefficient |
| Intercept | 1,209.14 |
| FloorSpace | 12.98 |
| CompetingAds | −6.856 |
| Price | −0.1473 |
Make a prediction for Sales when FloorSpace = 81, CompetingAds = 103, and Price = 1,317. (Enter your answer in thousands. Round your answer to 2 decimal places.)
Sales
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