The marketing manager used shelf space for pet food to predi

The marketing manager used shelf space for pet food to predict weekly sales. Perform a residual analysis for thse data. Evaluate whether the assumptions of regression have been seriously violated. Use Excel

Shelf Space Sales Aisle Location
5 160 0
5 220 1
5 140 0
10 190 0
10 240 0
10 260 1
15 230 0
15 270 0
15 280 1
20 260 0
20 290 0
20 310 1

Solution

The regression equation is
sales = 145.0 + 7.400 shelf space


S = 30.8058 R-Sq = 68.4% R-Sq(adj) = 65.2%


Analysis of Variance

Source DF SS MS F P
Regression 1 20535 20535 21.64 0.001
Error 10 9490 949
Total 11 30025

as the p-value is 0.001 < 0.05(level of significance)

so regression(linear) is not valid

The marketing manager used shelf space for pet food to predict weekly sales. Perform a residual analysis for thse data. Evaluate whether the assumptions of regr

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