III. The I-10 Carpet Outlet wants to develop a means to forecast its sales. The
ID: 403364 • Letter: I
Question
III. The I-10 Carpet Outlet wants to develop a means to forecast its sales. The store manager believes that the store%u2019s sales are directly related to the number of new housing starts in town. The manager has collected the following for the past 10 months:
Month Monthly Carpet Monthly Const.
Sales(1000s yd) Permits
1 5 17
2 12 30
3 6 12
4 5 14
5 8 18
6 4 10
7 14 38
8 9 20
9 9 16
10 16 31
Compute the regression equation.?
Month Monthly Carpet Monthly Const.
Sales(1000s yd) Permits
1 5 17
2 12 30
3 6 12
4 5 14
5 8 18
6 4 10
7 14 38
8 9 20
9 9 16
10 16 31
Explanation / Answer
FROM THIS REGRESSION EQUATION IS (SALES = 0.359826*MONTH CONST PERMITS + 1.999297)
SUMMARY OUTPUT Regression Statistics Multiple R 0.784387 R Square 0.615263 Adjusted R Square 0.567171 Standard Error 2.682271 Observations 10 ANOVA df SS MS F Significance F Regression 1 92.04338 92.04338 12.79344 0.007222 Residual 8 57.55662 7.194577 Total 9 149.6 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 1.999297 2.08196 0.960295 0.365027 -2.80171 6.800305 -2.80171 6.800305 X Variable 1 0.359826 0.1006 3.576792 0.007222 0.127841 0.59181 0.127841 0.59181