Question: To examine the relationship between the size (in square feet) of a store and its annual sales (in thousands of Dollars), a sample of 14 stores was selected. The results for the 14

stores are summarized in the table below.

a. Draw a scatter diagram of the data. Does a simple linear regression model seem appropriate here?

b. Fit the least squares line to the data to write the simple linear regression equation.

c. Plot the least squares line as a check on your calculations.

d. Interpret the meaning of the slope.

e. Interpret the meaning of the intercept. Does it have a practical meaning here?

f. Evaluate the assumptions (check on ? is i.i.d. N(0,?²)).

g. What are the values of SSE and s²? What does “s” mean?

h. What is the 95% Confidence Interval for the slope?

i. What is the value of “Coefficient of Determination”, what does it measure?