Question

The marketing manager of a large supermarket chain would like to use shelf space to predict the sales of pet food. A random sample of 12 equal-sized stores is selected, with the following results.

Shelf Space	Sales	Aisle Location
5	160	0
5	220	1
5	140	0
10	190	0
10	240	0
10	260	1
15	230	0
15	270	0
15	280	1
20	260	0
20	290	0
20	310	1

A. Construct a scatter plot for these data, b₀ = 145 and b₁ = 7.4.

B. Interpret the meaning of the slope, b₁, in this problem.

C. Predict the mean weekly sales (in hundreds of dollars) of pet food for stores with 8 feet of shelf space for pet food.

D. What does the coefficient of determination indicate about the independent variable?

Answer 1

Interpretation:

The scatter plot of the quantitative variables shelf space (X) and Sales (Y) enables that there exists a positive linear relationship between the two variables. Since, the direction of the data points is upwards.

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