Obtaining linear regression model for sales


Assignment:

Question 1. During 2002 the number of beds required per day at St Hallam's hospital was normally distributed with a mean of 1800 and a standard deviation of 190.  During the first 50 days of 2003 the average daily requirement for beds was 1830.  A senior hospital manager claims that this gives evidence that the requirements for beds has changed since 2001.  Do you agree?

Question 2. The following data were obtained in an experiment to estimate a possible relation between the number of showings in one week of a TV commercial in typical sales territories and the sales (in thousands of units) in that territory of the advertised article.

Territory

1

2

3

4

5

6

7

8

9

10

Showings

3

1

4

0

2

4

0

3

1

2

Sales

2.6

1.2

3

1

2

3.6

0.5

3.2

1.8

2.5


(i) Show that the data is significantly correlated. 
(ii) Construct a scatter pot of the data.
(iii) Obtain a linear regression model for sales against number of showings per week.
(iv) What will be the estimated sales if there are 7 showings in a week? And for 20 showings?

Provide complete and step by step solution for the question and show calculations and use formulas.

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