Question: The data in the worksheet CustomerBase in the Excel workbook 10F_Exam2.xls include the monthly sales totals from a random sample of 38 stores in a nation-wide chain of sporting goods stores. All stores in the chain are approximately the same size and carry essentially the same merchandise. Information is also provided in this dataset regarding the customer base for each of the 38 stores in the sample.

1. Assuming a linear relationship exists, formulate a simple linear regression model that estimates the relationship between monthly sales (Y) and median family income (X). Place your estimated regression equation in the space below . (5pts)

b. In the space below , interpret the meaning of the slope of the estimated regression line you derived in part (a). (5pts)

c. At the  = .05 level of significance, is there evidence of a statistically significant linear relationship between monthly sales and median family income? Place your answer and its justification in the space below . (5pts)

d. Derive a 95% confidence interval estimate for the average monthly sales associated with a store located in an area where the median family income is $35000. Place this interval in the space below and interpret its meaning. (5pts)

e. Comment on how you feel about the utility of the estimated simple linear regression model you derived in part (a). Are there other variables in the CustomerBase dataset that you would like to include in a model designed to explain the variation in monthly sales? If so, what are they and why are they attractive to you? Place your comments in the space below .

(5pts)

f. Using an appropriate subset of the variables provided in the dataset CustomerBase, derive an estimated linear regression model that you feel should be used to predict the average monthly sales in the areas serviced by these sporting goods stores. Place your regression equation in the space below and comment on why you have selected it. (5pts)

Price: $2.99

Solution: The downloadable solution consists of 10 pages
Deliverable: Word Document