Ten sales regions of equal sales potential for a company were randomly selected.

Question

Ten sales regions of equal sales potential for a company were randomly selected. The advertising expenditures (in units of $10,000) in these 10 sales regions were purposely set during July of last year at, respectively, 5, 6, 7, 8, 9, 10, 11, 12, 13 and 14. The sales volumes (in units of $10,000) were then recorded for the 10 sales regions and found to be, respectively, 91, 125, 97, 128, 109, 125, 117, 84, 95, and 94. Assuming that the simple linear regression model is appropriate, it can be shown that b0 = 121.7576, b1 = -1.6061.

Find a 95 percent confidence interval for the slope 1 of the simple linear regression model describing the sales volume data. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

The 95 percent confidence interval for 1 = [ ____, ____]

Explanation / Answer

Thus, 95% confidence interval = ( -5.792, 2.580 )

Hope this helps.

x y SUMMARY OUTPUT 5 91 6 125 Regression Statistics 7 97 Multiple R 0.298487591 8 128 R Square 0.089094842 9 109 Adjusted R Square -0.024768303 10 125 Standard Error 16.49127409 11 117 Observations 10 12 84 13 95 ANOVA 14 94 df SS MS F Significance F Regression 1 212.8030303 212.8030303 0.782473049 0.402188304 Residual 8 2175.69697 271.9621212 Total 9 2388.5 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 121.7575758 18.01960849 6.75694901 0.000144024 80.20428406 163.3108675 80.20428406 163.3108675 x -1.606060606 1.815629522 -0.884575067 0.402188304 -5.792909791 2.580788579 -5.792909791 2.580788579

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