Question

Bi-lo Appliance Stores has outlets in several large metropolitan areas in New England. The general sales manager plans to air a commercial for a digital camera on selected local TV stations prior to a sale starting on Saturday and ending Sunday. She plans to get the information for Saturday-Sunday digital camera sales at the various outlets and pair them with the number of times the advertisement was shown on the local TV stations. The purpose is to find whether there is any relationship between the number of times the advertisement was aired and digital camera sales. The pairings are as follows:

Location of TV Station Number of Airings ($ thousands)

Providence 3 16

Springfield 6 17

New Haven 3 21

Boston 6 23

Hartford 7 23

a. Determine the correlation coefficient. (Round the final answer to 4 decimal places.)

b. Determine the coefficient of determination. (Round the final answer to 3 decimal places.) \

c. Interpret these statistical measures. (Round the final answer to 1 decimal place.) The coefficient of determination indicates X accounts for about _____ percent of the variation in Y.

Answer 1

Answer: Bi-lo Appliance Stores has outlets in several large metropolitan areas in New England. The general sales manager plans to air a commercial for a digital camera on selected local TV stations prior to a sale starting on Saturday and ending Sunday.

Solution:

Therefore,

a) correlation coefficient. = 0.4835

The correlation coefficient indicates a positive correlation between the variables.

b) coefficient of determination =r2 = 0.234

c) The coefficient of determination indicates X accounts for about 23.7 percent of the variation in Y.