Management knows that the longer shoppers stay in a store, the more likely a pur

Question

Management knows that the longer shoppers stay in a store, the more likely a purchase will be made. Management has asked you to do a study of the length of time in minute that people shop in you store. One of your staff members randomly selects 5 shoppers and records the number of minutes they are in the store. The time in minutes for the 5 random shoppers are:

                Time Spent in Shopping (minutes)

                                10

                                18

                                12

                                170

                                25

**** Please show your work / steps and advise what theory or formula used to solve question; thank you****

Explanation / Answer

We use linear regression to solve the question

purchase is a dependent variable(Y) and time spent is the independent variable(X)

The regression equation is given as Y=mX+c

m is termed as slope and c is termed as constant of the equation

as we observe the data we have 170 minutes(4th entry) which is different from the other values

this indicates that time spent cannot completely explain the purchase behaviour of the customer

Note:as we dont have purchasing pattern data(Y), we cannot compute the complete regression analysis

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