Question

1. Regression and correlation problem

Boyce Argross is also working on Chobani campaign; his specialty is sales promotion, and he’ll be designing the campaign that provides samples of the Greek yogurt to potential customers in retail stores across the nation. Boyce believes there’s a strong connection between the amount of yogurt given as a sample and how likely people are to purchase the yogurt after sampling it. In four test markets, he gives one to two ounce samples (OZ) to participants, and then asks them to state how likely (in %) they would be to purchase the yogurt (%PURCH). Data from these tests is provided in the table below.

City	OZ	%PURCH	OZ*%PURCH	OZ^2	%PURCH^2
San Diego, CA	1.00	5.00	5.00	1.00	25
Racine, IL	1.25	8.00	10.00	1.56	64
Grandview, PA	1.75	11.00	19.25	3.06	121
Paris, TX	2.00	16.00	32.00	4.00	256
mean	1.50	10.00	16.56	2.41	116.5
sum	6.00	40.00	66.25	9.63	466

a. Determine the correlation between OZ and %PURCH in number and words. Show all work.

b. Estimate the regression function between OZ and %PURCH, calculating each parameter and stating the equation of the line. Show all work

Answer 1