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Regression analysis

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You are the manager of the PSC marina on the Missouri River. From observations in the past, you think there is a direct link between the river level and the amount of fuel you sell. As the level rises, your sales increase, and as it decreases, your sales decline. The owner of the marina just took a statistics class at Peru State College, and believes that linear regression is the key to predicting sales. She has given you the task of developing this equation. As a reference, please see both your text and the Excel Tutor 9.1. Take special note of the fact that the data tools are not installed until used the first time. You need to present a well written memo to the owner (Ms. Sunny). Please use a memo template in Word, and paste in the appropriate charts and data. Explain all data to Ms. Sunny, as her grade in the statistics class was not very good

River Level Gallons of Gasoline Sold

12.1 2046
13.2 2111
13.5 2214
14.2 2460
15 2640
15.4 2710
16.2 2924
16.7 3090
17.1 3332
17.2 3460
17.4 3671
17.5 3712

Use regression analysis to calculate the line that best fits relationship between the river level and the sale of gasoline. This is the y= 11.5441+19.63241X . Examine the Excel tutor for where these numbers are derived from. Then use that equation to calculate what the sales will be at a river level of 15.8 and a level of 16.3. Finally, explain to your boss the implications of using this regression model if heavy rains cause the river to rise above 18 feet.

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Solution Summary

It applies regression analysis to calculate the line that best fits relationship between the river level and the sale of gasoline.

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The R-square value, which indicates the goodness of fit for the regression line is The R-square value, which indicates the goodness of fit for the regression line is The R-square value, which indicates the goodness of fit for the regression ...

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