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Simple linear regressions and predictions

The marketing manager of a large supermarket chain has the business objective of using shelf space most efficiently. Toward that goal, she would like to use shelf space to predict the sales of a specialty pet food. Data are collected from a random sample of 12 equal-sized stores, with the following results:

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
2850

a. Construct a scatter plot. For these data, bo = 145, and b1 = 7.4.
b. Interpret the meaning of the slope b1, in this problem.
c. Predict the weekly sales of pet food for stores with 8 sf of shelf space for pet food.

Solution Summary

This solution consists of details for using a simple regression to do a prediction.

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