# Regression Analysis

In trying to look at the effects of shopping center expansion, the Commerce Department decided to look at the relationship between the number of shopping centers and the retail sales for different states in the same region. It collected the data for the North Central states in the U.S. and found the following:(PLEASE SEE ATTACHED TABLE)

a). Create a scatter plot of the data using excel.

b). Find the regression equation relating retail sales and number of shopping centers.

c). Plot the regression line (using excel) on the same plot as the data. Do you think the line fits the data well? Why or why not?

d). Use the regression line to predict retail sales for each state.

e). Calculate the residuals for each state. Which state has the largest residual? Which state has the smallest? Do the residuals support your answer to part (d)?

f). Find the standard error of the estimate.

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#### Solution Preview

Please see the attachment.

In trying to look at the effects of shopping center expansion, the Commerce Department decided to look at the relationship between the number of shopping centers and the retail sales for different states in the same region. It collected the data for the North Central states in the U.S. and found the following:(PLEASE SEE ATTACHED TABLE)

a). Create a scatter plot of the data using excel.

Note. The graph was drawn by Maple since I am not very familiar with Excel. Sorry for that.

b). Find the regression equation relating retail sales and number of shopping centers.

Denote the number of shopping center by X and denote the retail sales by Y, we get the regression equation as follows.

Y=0.0190214X+1.33086

c). Plot the regression line (using ...

#### Solution Summary

The scatter plot of the data using Excel is created. A regression equation relating retail sales and number of shopping centers are found. The solution answers the question(s) below.