Question

The Cotton Mill is an upscale chain of women's clothing stores, located in the southwestern United States. Do to recent success, The Cotton Mill's top management is planning to expand by locating new stores in other regions of the country. The director of planning has been asked to study the relationship between yearly sales and the store size. As part of the study, the director selects a sample of 25 stores and determines the size of the store in square feet and the sales for the last year. The sample data follows.

Store size (1000s of square feet)        Sales ( millions of $ )

     3.7                                                9.18

     2.0                                                4.58

     5.0                                                8.22

     0.7                                                1.45

     2.6                                                6.51

     2.9                                                2.82

     5.2                                               10.45

     5.9                                                 9.94

     3.0                                                 4.43

     2.4                                                 4.75

     2.4                                                 7.30

   0.5                                                 3.33

   5.0                                                 6.67

   0.4 0.55

   4.2 7.56

   3.1 2.23

   2.6 4.49

   5.2 9.90

   3.3 8.93

   3.2 7.60

   4.9 3.71

   5.5 5.47

   2.9 8.22

   2.2 7.17

   2.3 4.35

    

Using store size as the independent variable, run the data using excel and answer the following: 1. Write the regression equation. 2. Interpret the regression constant and regression coefficient. 3. Forecast a value for the dependent variable. 4. Test the significant of the regression coefficient using alpha = .05. 5. Test the overall significant of the regression model. 6. Interpret the coefficient of determination.  

Answer 1