Question:

An investigation is taking place to see whether the average price of a particular good in the market predicts the total number of weekly sales. 22 observations of average price and total sales have been observed and are given below.

1. Create a scatterplot of the data.
2. Fit a linear regression model and derive the relationship between weekly sales and average price.
3. Calculate the predicted number of sales when average price is £27.
4. Calculate 99% confidence interval for the change in sales for each £1 increase in the average price.
5. Calculate the 95% confidence interval for the mean number of sales when average price is £27
6. Calculate the 95% prediction interval of the number of weekly sales when average price is £27

vii) Explain why you may not be confident predicting a value for the mean number of weekly sales when average price is £45.

Price: $2.99

Solution: The downloadable solution consists of 5 pages
Deliverable: Word Document