The sales manager of a large apartment rental complex feels the demand for apartments may be related to the number of newspaper ads placed during the previous month. She has collected the data shown in the accompanying table.
Ads Purchased Apartments leased
15 6
9 4
40 16
20 6
25 13
25 9
15 10
35 16
2. Formulate a simple linear regression model and state it in its general form.
3. State the model which estimates the values of Y as a function of X.
4. State the formula for the slope and the intercept.
5. Set up a calculation table and calculate the values needed to determine the slope and the intercept.
6. Calculate the slope (3 decimals).
7. Calculate the intercept (3 decimals).
8. State the estimated regression equation.
9. If the manager places 30 ads in February, how many units are estimated to be leased in March?
10. The manager needs to rent 20 units in April. How many ads does she need to place in March?
11. Calculate the SST.
12. Calculate the SSE.
13. Calculate the SSR.
14. Compute the Coefficient of Determination and explain what it means.
15. Compute the Correlation Coefficient between X and Y and state the reason for the positive or negative sign chosen