Question

Question 1

TABLE 13- 2 A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below: City Price ($) Sales River City 1.30 100 Hudson 1.60 90 Ellsworth 1.80 90 Prescott 2.00 40 Rock Elm 2.40 38 Stillwater 2.90 32

Referring to Table 13- 2, what percentage of the total variation in candy bar sales is explained by prices?

A) 48.19%

B) 78.39%

D) 88.54%

E) 100%

Question 2:

TABLE 13-2

A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below:

City	Price ($)	Sales
River City	1.30	100
Hudson	1.60	90
Ellsworth	1.80	90
Prescott	2.00	40
Rock Elm	2.40	38
Stillwater	2.90	32

Referring to Table 13-2, to test whether a change in price will have any impact on sales, what would be the critical values? Use α = 0.05.

		±3.1634
		±2.5706
		±2.7765 (choose this, this is the correct answer)
		±3.4954

Question 3:

TABLE 13- 2

A candy bar manufacturer is interested in trying to estimate how sales are influenced by the price of their product. To do this, the company randomly chooses 6 small cities and offers the candy bar at different prices. Using candy bar sales as the dependent variable, the company will conduct a simple linear regression on the data below:

City	Price ($)	Sales
River City	1.30	100
Hudson	1.60	90
Ellsworth	1.80	90
Prescott	2.00	40
Rock Elm	2.40	38
Stillwater	2.90	32

Referring to Table 13- 2, if the price of the candy bar is set at $2, the predicted sales will be

		65.
		30.
		100.
		90.

Question 4

QUESTION 10

1. TABLE 13- 4
   
   The managers of a brokerage firm are interested in finding out if the number of new clients a broker brings into the firm affects the sales generated by the broker. They sample 12 brokers and determine the number of new clients they have enrolled in the last year and their sales amounts in thousands of dollars. These data are presented in the table that follows.
   

   Broker	Clients	Sales
   1	27	52
   2	11	37
   3	42	64
   4	33	55
   5	15	29
   6	15	34
   7	25	58
   8	36	59
   9	28	44
   10	30	48
   11	17	31
   12	22	38

   
   
   Referring to Table 13- 4, set up a scatter plot.

Answer 1

1.

X Values
∑ = 12
Mean = 2
∑(X - M_x)² = SS_x = 1.66

Y Values
∑ = 390
Mean = 65
∑(Y - M_y)² = SS_y = 4918

X and Y Combined
N = 6
∑(X - M_x)(Y - M_y) = -80

R Calculation
r = ∑((X - M_y)(Y - M_x)) / √((SS_x)(SS_y))

r = -80 / √((1.66)(4918)) = -0.8854

So r^2=0.7839

Hence answer here is

B) 78.39%