Store Monthly Profit Monthly Advertising expenditure A1 $13,593.02 $1,710.00 A2 $23,896.73 $1,983.00 A3 $9,932.64 $952.00 A4...

Store	Monthly Profit	Monthly Advertising expenditure
A1	$13,593.02	$1,710.00
A2	$23,896.73	$1,983.00
A3	$9,932.64	$952.00
A4	$9,100.41	$1,009.00
A5	$15,220.08	$2,315.00
A6	$33,900.67	$2,197.00
A7	$6,935.36	$934.00
A8	$10,112.62	$2,375.00
A9	$9,155.14	$1,065.00
A10	$8,513.94	$812.00
A11	$7,933.25	$1,052.00
A12	$11,388.13	$2,234.00
A13	$26,299.72	$2,962.00
A14	$21,423.87	$1,699.00
A15	$21,430.21	$1,991.00
A16	$19,984.96	$2,181.00
A17	$11,575.09	$1,831.00
A18	$18,900.44	$1,819.00
A19	$21,815.24	$2,394.00
A20	$35,642.73	$2,296.00

If Crusty’s is considering spending $1750 on advertising what is the 95% prediction interval for expected profit?
1. $2,326.63 to $30,602.31
2. $2,109.32 to $18,554.28
3. $0.15 to $1245.81
4. $13,372.72 to $19,556.21

Expert Solution

We use Minitab to solve this question-

95% prediction interval for expected profit is,
A) $ 2326.63 to $ 30602.31

orchestra answered 1 year ago

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Assume Monthly Advertising Expenditure is the independent variable. Store Monthly Profit Monthly Advertising expenditure A1 $13,593.02...

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