Carpet City wants to develop a means to forecast its carpet sales. The store man
ID: 3143249 • Letter: C
Question
Carpet City wants to develop a means to forecast its carpet sales. The store manager believes that the store’s sales are directly related to the number of new housing starts in town. The manager has gathered data from county records on monthly house construction permits and from store records on monthly sales. These data are as follows:
Monthly construction permits
a. Develop a linear regression model for these data and forecast carpet sales if 30 construction permits for new homes are filed.
b. Determine the strength of the causal relationship between monthly sales and new home construction by using correlation.
Please use an excel spreadsheet and show me the formulas used to get the answers
Monthly carpet sales(1000 yd)Monthly construction permits
9 17 14 25 10 8 12 7 15 14 9 7 24 45 21 19 20 28 29 28Explanation / Answer
sales ^ = 7.752757353 + 0.431678922*monthly_construct
when x = 30
= 7.752757353 + 0.431678922*30= 20.703125
b) r = 0.75386 since r < 0.8 and r > 0.5
its effect is moderate
copy and paste the data
use regression in data analysis in data .
select columns for each variable.
SUMMARY OUTPUT Regression Statistics Multiple R 0.753864513 R Square 0.568311703 Adjusted R Square 0.514350666 Standard Error 4.806320836 Observations 10 ANOVA df SS MS F Significance F Regression 1 243.2942402 243.2942 10.53189 0.011784 Residual 8 184.8057598 23.10072 Total 9 428.1 Coefficients Standard Error t Stat P-value Lower 95% Intercept 7.752757 3.04083174 2.549552 0.034199 0.740587 Monthly construction permits 0.4316789 0.133017165 3.245287 0.011784 0.124941