The business objective of the director of Game Ghana is to forecast monthly sales for all new stores, based on the number of profiled customers who live no more than 30 minutes from a Game store. To examine the relationship between the number of profiled customers who live within a fixed radius from a Game store and it monthly sales, data were collected from a sample of 10 stores: Store 1 2 3 4 5 6 7 8 9 10 No of customers (‘000) 5 7 2 8 4 3 2 4 5 3 Monthly Sales (‘000) 8 12 6 14 8 7 9 10 12 8 (a) Use the least-squares method to compute the regression coefficients ? ??? ? (b) Write down the estimated equation and predict the monthly sales if there are 9000 customers (c) Determine the coefficient of determination, r2 and explain its meaning in this problem
The business objective of the director of Game Ghana is to forecast monthly sales for all new stores, based on the number of profiled customers who live no more than 30 minutes from a Game store. To examine the relationship between the number of profiled customers who live within a fixed radius from a Game store and it monthly sales, data were collected from a sample of 10 stores:
Store 1 2 3 4 5 6 7 8 9 10
No of customers (‘000)
5
7
2
8
4
3
2
4
5
3
Monthly Sales (‘000)
8
12
6
14
8
7
9
10
12
8
(a) Use the least-squares method to compute the regression coefficients ? ??? ?
(b) Write down the estimated equation and predict the monthly sales if there are 9000 customers
(c) Determine the coefficient of determination, r2 and explain its meaning in this problem
(d) Determine the value of the extent of relationship between monthly sales and number of customers, and interpret your results.
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