The Quick Sell car dealership has been usinf 1 minute spot ads on a local tv...

The Quick Sell car dealership has been usinf 1 minute spot ads on a local tv station. The ads run during the evening hours and advertise the different models and price ranges of the cars on the lot that week. During a randomly chosen 10 week period, the Quick Sell dealer kept a weekly record of the number of TV ads versus the number of cars sold.

# of Ads: 6, 20, 0, 14, 25, 16, 28, 18, 10, 8

Cars Sold: 15, 31, 10, 16, 28, 20, 40, 25, 12, 15

A. Find the regression equation.

B. Test the data for positive linear correlation. Use a=0.05

c. If the manager can only afford 15 ads per week, how many cars can he/she expect to sell?

Solutions

Expert Solution

A. Find the regression equation: y = 1.011x + 6.5407

Bring data in to excel and run regression analysis

B. Test the data for positive linear correlation. Use a=0.05

Multiple (r) is there in the regression summary output.

correlation coefficient r = 0.92

c. If the manager can only afford 15 ads per week, how many cars can he/she expect to sell?

y = 1.011x + 6.5407

x = 15

y = 1.011*15 + 6.5407 = 22

22 cars can be expect to sell

orchestra answered 1 year ago

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