Leslie Sporting Goods is a locally owned store that specializes in printing team

Question

Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie’s prints everything from bowling team jerseys to fraternity/sorority apparel to special event shirts, summer league baseball and softball team jerseys are the company’s biggest source of revenue.

A portion of Leslie’s operating information for the company’s last year follows:

5. Perform a least-squares regression analysis on Leslie’s data. (Use Microsoft Excel or a statistical package to find the coefficients using least-squares regression. Round your answers to 2 decimal places.)


  
6. Using the regression output, create a linear equation (y = a + bx) for estimating Leslie’s operating costs. (Round your answers to 2 decimal places.)



7. Using the least-squares regression results, calculate the store’s expected operating cost if it prints 630 jerseys. (Round your intermediate calculations to 2 decimal places. Round your final answer to 2 decimal places.)

Month Number of Jerseys Printed Operating Cost January 220 $5,875 February 215 5,780 March 245 5,950 April 555 8,700 May 700 9,700 June 615 9,295 July 460 6,220 August 350 6,150 September 320 6,040 October 250 5,960 November 205 4,925 December 200 4,810

Explanation / Answer

Answer:

Using excel to perform the regression analysis:

Coefficients would look like this : X intercept : 3430.80

Slope : 8.82

The output you will get like this in excel sheet

Answer 2 : Equation is this:

Y = operating costs

X = no of jerseys

operating costs = 3430.80 + 8.82 * No of jerseys

Answer 3: expected operating costs for 630 jerseys

operating costs = 3430.8 + 8.82 * 630

operating costs = $ 8987.40

SUMMARY OUTPUT Regression Statistics Multiple R 0.947414664 R Square 0.897594545 Adjusted R Square 0.887354 Standard Error 554.0850586 Observations 12 ANOVA df SS MS F Significance F Regression 1 26909770.39 26909770.39 87.65104815 2.89818E-06 Residual 10 3070102.522 307010.2522 Total 11 29979872.92 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 3430.805463 376.0469214 9.123344102 3.66076E-06 2592.920707 4268.690218 2592.920707 4268.690218 X Variable 1 8.820146355 0.942100501 9.362213849 2.89818E-06 6.721015627 10.91927708 6.721015627 10.91927708

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