Homework Sourse1 Should mean disposable income be used to predict sales bas
1. Should mean disposable income be used to predict sales based on the sample of 14 stores.
2. Should the management of sunflower accept the claims of Triangle\'s leasing agents? Why or why not?
3. Is it possible that the mean dispoble income of the sunflower surrounding area is not an important factor in leasing new locations. Explain
4. Are there any other factors not mentioned by the leasing agents that might be relevent to the store leasing decision?
| Store | Average Disposable Income($000) | Annual Sales |
| 1 | 22.3 | 3.7 |
| 2 | 36.6 | 3.9 |
| 3 | 55.5 | 6.7 |
| 4 | 46.7 | 9.5 |
| 5 | 32.4 | 3.4 |
| 6 | 31.7 | 5.6 |
| 7 | 41.6 | 3.7 |
| 8 | 21.4 | 2.7 |
| 9 | 44.4 | 5.5 |
| 10 | 34.1 | 2.9 |
| 11 | 51.8 | 10.7 |
| 12 | 45.1 | 7.6 |
| 13 | 52 | 11.8 |
| 14 | 49.2 | 4.1 |
Solution
1) NO, DISPOSABLE INCOME SHOULD NOT BE USE TO PREDICT THE SALES BECAUSE IF WE SEE FROM 2ND TO 4TH YEAR THE DISPOSABLE INCOME INCREASED VERY MUCH IN 3RD YEAR IN RESPRECT TO 2RD YEAR THEN THE SALES IS NOT INCREASED MUCH BUT THE DISPOSABLE INCOME IS REDUCED IN 4TH YEAR WITH RESPECT TO 3RD YEAR AND THE SALES INCREASES VERY MUCH. AGAIN IN THE 5TH YEAR THE INCOME REDUCES AND THE SALES ALSO REDUCES SO THERE IS NO PROPER LINK TO PREDICT THE SALES FROM THE INCOME
![1. Should mean disposable income be used to predict sales based on the sample of 14 stores. 2. Should the management of sunflower accept the claims of Triangle\](/WebImages/26/1-should-mean-disposable-income-be-used-to-predict-sales-bas-1068583-1761559385-0.webp "1. Should mean disposable income be used to predict sales based on the sample of 14 stores. 2. Should the management of sunflower accept the claims of Triangle\")
