) Write the regression equation. Define the variables used in your equation. b) What does the slope mean in this context? c) What does the y-intercept mean in this context? Is it meaningful? d) If 18 people are working, what Sales do you predict? e) If sales for the 18 people are actually $25,000, what is the value of the residual? f) Have we overestimated or underestimated the sales?
Bookstore sales revisited Recall the data we saw in
Chapter 6, Exercise 3 for a bookstore. The manager wants
to predict Sales from Number of Sales People Working.
Number of Sales
People Working Sales (in $1000)
2 10
3 11
7 13
9 14
10 18
10 20
12 20
15 22
16 22
20 26
Dependent variable is Sales
R-squared = 93.2,
s = 1.477
Variable Coefficient
Intercept 8.1006
Num_Workers 0.9134
a) Write the regression equation. Define the variables
used in your equation.
b) What does the slope mean in this context?
c) What does the y-intercept mean in this context? Is it
meaningful?
d) If 18 people are working, what Sales do you predict?
e) If sales for the 18 people are actually $25,000, what is
the value of the residual?
f) Have we overestimated or underestimated the sales?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 7 images
