# Confidence Interval, Prediction Interval

See attached file.

The Zebra Wild Game Company sells exotic game to high end restaurants throughout Asia. The sales manager wants to determine what, if any, relationship exists between the pounds/week of game sold by 24 sales persons and the advertising dollars spent (in hundreds of dollars/week).

Attached is the MegaStat regression output. The dependent variable is Sales (in pounds/week) and the independent variable is Advertising (in hundreds of dollars/week).

Use the MegaStat output to identify and interpret the confidence and prediction intervals for an advertising expenditure of two hundred dollars.

For an advertising expenditure of $200, the 95% confidence interval: [ , ]

Round your final answers to three decimal places.

Interpretation of the 95% confidence interval:

A. This says we are 95% confident that any particular sales person, with $200 in advertising expenditures, will show sales between these values.

B. This says we are 95% confident that, in the population, advertising expenditures between these values will result in an average of $200 additional sales.

C. This says we are 95% confident that across many sales persons with advertising expenditures of $200, their mean sales will be between these values.

D. This says we are 95% confident that each additional $100 in advertising expenditures will result in sales between these values.

E. This has no practical interpretation in this problem situation

Please select the correct answer: A, B, C, D, or E

For an advertising expenditure of $200, the 95% prediction interval: [ , ]

Round your final answers to three decimal places.

For 5 years of experience, the 95% prediction interval:

A. This says we are 95% confident that any particular sales person, with $200 in advertising expenditures, will show sales between these values.

B. This says we are 95% confident that, in the population, advertising expenditures between these values will result in an average of $200 additional sales.

C. This says we are 95% confident that across many sales persons with advertising expenditures of $200, their mean sales will be between these values.

D. This says we are 95% confident that each additional $100 in advertising expenditures will result in sales between these values.

E. This has no practical interpretation in this problem situation

Please select the correct answer: A, B, C, D, or E

© BrainMass Inc. brainmass.com June 4, 2020, 1:02 am ad1c9bdddfhttps://brainmass.com/statistics/regression-analysis/confidence-interval-prediction-interval-375275

#### Solution Summary

The Correct Answers are provided.