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Session 12

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Submitted By miguelfaundez
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Session 13 - Homework Problems
Miguel Faundez

Chapter 13

13.4
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a) The scatter plot shows a positive linear relationship.

b) For each increase in shelf space of an additional foot, weekly sales are estimated to increase by $7.40. c) Y=145+7.4X=145+7.4(8)=204.2, or $204.20.

13.5
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a) From the scatter diagram, we can see that there exists positive relation between reported and audited magazine.

b) The slope, B1=26.724 implies that for a unit increment in number of reported magazines, there will be 26.724 increment in the dependent variable, Audited number of magazines. c) The predicted audited newsstand sales for magazine that report newsstand sales of 400,000(X=400) is audited=0.5718+26.724x400=10690.1718.

13.16
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a) 20,535/30,025=0.684. 68.4% of the variation in sales can be explained by the variation in shelf space. b) √9,490/10=30.8058. c) Based on a) and b), the model should be useful for predicting the labor hours.

13.17
Answers

a) r2 = 130,301.41/144,538.64 = .901498796
This means that 90.15% of the variation in audited sales is explained by the variability in reported sales.

b) Formula = SST = SSR + SSE SST-SSR = SSE
144.538.64 – 130,301.41 = 14,237.23
SSE = 14,237.23
SYX = √SSE/ (n – 2) = √14,237.23/ (10 – 2)
= √1779.65
SYX = 42.1859

c) This regression model is very helpful in predicting audited sales

13.24
Answers

a) A residual analysis of the data indicates a pattern, with sizable clusters of consecutives residuals that are either all positive or all negative. This pattern indicates a violation of the assumption of linearity. A curvilinear model should be investigated.

13.42
Answers

a) T STAT = (b1 – β1)/Sb1 = 7.4/1.59 = 4.65 >2.2281. Reject H0. There is evidence of a linear relationship between shelf space and sales. b) b1 ± tα/2Sb1 = 7.4 ± 2.2281(1.59)3.86 ≤ β1 ≤

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