Share
Explore BrainMass

Regression analysis

Problem #1 The marketing manager of a large supermarket chain would like to determine the effect of shelf space on the sales of pet food. A random sample of 12 equal-sized stores is selected, with the following results:

Store Shelf Space X (Feet) Weekly Sales Y
(Hundreds of Dollars)
1 5 1.6
2 5 2.2
3 5 1.4
4 10 1.9
5 10 2.4
6 10 2.6
7 15 2.3
8 15 2.7
9 15 2.8
10 20 2.6
11 20 2.9
12 20 3.1

a. Set up a scatter diagram (NOTE: you can select this as an output with the regression).

? ______________________________________________________

b. Assuming a linear relationship, use the least squares method to find the regression coefficients B0 & B1.

? ______________________________________________________

c. Interpret the meaning of slope (B1) in this problem.

? ______________________________________________________

d. Predict the average weekly sales (in hundreds of dollars) of pet food for stores with 8 feet of shelf space for pet food.

? _______________________________________________________

e. Suppose that sales in store 12 are 2.6. Repeat b-d with this value and compare the results to your original results.
? _______________________________________________________

f. How much shelf space would you recommend that the marketing manager allocate to pet food? Explain..

? ______________________________________________________

See attached file for full problem description.

Attachments

Solution Summary

Step by step method for regression analysis is discussed here. Regression coefficients, coefficient of determination, scatter diagram and significance of regression model are explained in the solution.

$2.19