Business and Management
The owner of a small ice cream stand believes that total weekly revenue (y, in dollars) during the summer months is related to money spent on advertising (x, dollars per week). A random sample of summer weeks was selected, and the resulting data are given in the following table.
|
X
|
30
|
300
|
380
|
275
|
350
|
190
|
85
|
|
y
|
957
|
1125
|
1202
|
1028
|
1134
|
1124
|
1062
|
a. Find the estimated regression line, and complete the ANOVA table.
b. What proportion of the observed variation in weekly revenue is explained by this regression model?
c. Find a 99% confidence interval for the regression parameter b1.
d. Conduct a hypothesis test of H0: b0 = 0 versus Ha: β0 > 0. Interpret the results. (What happens if the owner spends nothing on advertising in a week?)