The marketing manager of a large supermarket chain has the b

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 pet food. Data are collected from a random sample of 12 equal-sized stores, with the following results. Use these data to complete parts (a) through (c) below.

a.) Construct a scatter plot.

b.) For these data, b0 = 150.7 and b1 = 7.2. Interpret the meaning fo the slope, b1, in this problem. Choose the correct answer below.

a.) The slope, b1, implies that for each increase of 1 foot of shelf space, the weekly sales are expected to decrease by the value of b1, in dollars.

b.) The slope, b1, implies that for each increase of 1 foot of shelf space, the weekly sales are expected to increase by the value of b1, in dollars.

c.) The slope, b1, implies that the average weekly sales is equal to the value of b1, in dollars.

c.) Predict the weekly sales of pet food for stores with 21 feet of shelf space for pet food.

Y21 = $_______

Solution

b0 = 150.7
b1 = 7.2
regression equation is Y_hat = b0 + b0*X
Y_hat = 150.7 + 7.2X

b.) The slope, b1, implies that for each increase of 1 foot of shelf space, the weekly sales are expected to increase by the value of b1, in dollars.

X=21
Y_hat = 150.7 + 7.2*21
= $ 301.9