Answered: The I-85 Carpet Outlet wants to develop…

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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Question

The I-85 Carpet Outlet wants to develop a means to forecast
its carpet sales. The store manager believes that the store’s sales are directly related to the number of new housing starts in town. The manager has gathered data from county records of monthly house construction permits and from store records on monthly sales. These data are as follows:

a. Develop a linear regression model for this data and forecast carpet sales if 25 construction permits for new homes are filed.

b. Determine the strength of the causal relationship be- tween monthly sales and new home construction using correlation.

Monthly Carpet Sales Monthly Construction
(1000s yd) Permits
5 17
12 30
6 12
5 14

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