The marketing manager used shelf space for pet food to predict weekly sales. For
ID: 3386051 • Letter: T
Question
The marketing manager used shelf space for pet food to predict weekly sales. For thos data, SSR=20.535 and SST = 30,025.
A) Determine the coefficient of determination, r2, and interpret its meaning. B) Determine the standard error of the estimate. C) How useful do you think this regression model is for predicting sales? Use Excel
Shelf Space
Sales
Aisle Location
5
160
0
5
220
1
5
140
0
10
190
0
10
240
0
10
260
1
15
230
0
15
270
0
15
280
1
20
260
0
20
290
0
20
310
1
Shelf Space
Sales
Aisle Location
5
160
0
5
220
1
5
140
0
10
190
0
10
240
0
10
260
1
15
230
0
15
270
0
15
280
1
20
260
0
20
290
0
20
310
1
Explanation / Answer
Coefficient of determinatin is 0.684. 68.4% of variation in sales is explained by variation in shelf space.
The line of regression is given by
sales = 7.4 shelf space +145
The above line of regression is significant since pvalue of the slope is very low.
Hence the regression model is very useful
SUMMARY OUTPUT Regression Statistics Multiple R 0.8270 R Square 0.6839 Adjusted R Square 0.6523 Standard Error 30.8058 Observations 12.0000 ANOVA df SS MS F Significance F Regression 1.0000 20535.0000 20535.0000 21.6386 0.0009 Residual 10.0000 9490.0000 949.0000 Total 11.0000 30025.0000 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 145.0000 21.7830 6.6566 0.0001 96.4644 193.5356 96.4644 193.5356 Shelf Space 7.4000 1.5908 4.6517 0.0009 3.8555 10.9445 3.8555 10.9445Related Questions
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