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The marketing manager of a large supermarket chain would like to use shelf space

ID: 3269977 • Letter: T

Question

The marketing manager of a large supermarket chain would like to use shelf space to predict the sales of pet food. For a random sample of 12 similar stores, she gathered the following information regarding the shelf space, in feet, devoted to pet food and the weekly sales in hundreds of dollars. Use these data to answer.

Store

1

2

3

4

5

6

Shelf Space

5

5

5

10

10

10

Weekly Sales

1.6

2.2

1.4

1.9

2.4

2.6

Store

7

8

9

10

11

12

Shelf Space

15

15

15

20

20

20

Weekly Sales

2.3

2.7

2.8

2.6

2.9

3.1



Find the correlation of determination then construct a 95% prediction interval estimate for the weekly sales, in hundreds of dollars, for a store with 8 feet of shelf space devoted to pet food.

A. 2.86 < y < 6.23

B. 1.31 < y < 2.77

C. -0.131 < y < 1.84

D. 1.54 < y < 4.24

Store

1

2

3

4

5

6

Shelf Space

5

5

5

10

10

10

Weekly Sales

1.6

2.2

1.4

1.9

2.4

2.6

Explanation / Answer

The statistical software output for this problem is:

Predicted values:

Hence,

Prediction interval will be:

1.31 < y < 2.77

Option B is correct.

X value Pred. Y s.e.(Pred. y) 95% C.I. for mean 95% P.I. for new 8 2.042 0.11416187 (1.7876315, 2.2963685) (1.3099862, 2.7740138)