# Identify and interpret Confidence and prediction intervals

See attached file.

The Zebra Wild Game Company sells exotic game to high end restaurants throughout the Far East. The sales manager wants to determine what, if any, relationship exists between the pounds of game sold by 24 sales persons and two independent variables, namely, the advertising dollars spent (in hundreds of thousands of dollars) and the market potential (in pounds).

Attached are the data and the multiple regression output.

Using the attached MegaStat output identify and interpret the confidence and prediction intervals for given values of the independent variables

Round all value entries to three decimal places.

When the advertising expenditure = two hundred thousand dollars and the market potential = 200:

predicted value =

Interpretation of the predicted value:

A. This is the sales we predict will occur 95% of the time when the advertising expenditure = 200 thousand dollars and the market potential = 200.

B. This is the point prediction of sales when the advertising expenditure = 200 thousand dollars and market potential = 200.

C. This is the sales level we use to predict when the advertisingpounds

expenditure = 200 thousand dollars and the market potential = 200

D. This is our prediction of the standard error associated with an advertising expenditure of 200 thousand dollars and a market potential of 200 pounds.

E. This value has no practical interpretation.

Please make your selection: A, B, C, D, or E

95% confidence interval: [ , ]

Interpretation of the 95% confidence interval:

A. This says we are 95% confident that the mean sales for all sales persons will be between these values.

B. This says we are 95% confident that the sales of an individual sales person having an advertising expenditure of 200 thousand dollars and a market potential of 200 will be between these values.

C. This says 95% of the sales will be between these values.

D. This says we are 95% confident that the mean sales for all sales persons having advertising expenditures of 200 thousand dollars and a market potential = 200 will be between these values.

E. This confidence interval has no practical interpretation.

Please make your selection: A, B, C, D, or E

95% prediction interval: [ , ]

interpretation of the 95% prediction interval:

A. This says we are 95% confident that the mean sales for all sales persons will be between these values.

B. This says we are 95% confident that the sales of an individual sales person with 200 thousand dollars in advertising expenditures and a market potential of 200 will be between these values.

C. This says 95% of the sales will be between these values.

D. This says we are 95% confident that the mean sales for all sales persons having an advertising expenditure of 200 thousand dollars and a market potential of 200 will be between these values.

E. This confidence interval has no practical interpretation.

Please make your selection: A, B, C, D, or E

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#### Solution Summary

The Correct Answers are provided.