Sales are often related to economic indicators. One possible indicator is the unemployment rate. Data for a
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Sales are often related to economic indicators. One possible indicator is the unemployment rate. Data for a large retail store were used to obtain a linear regression model to predict quarterly Sales ($ billion) based on unemployment Rate (in %) over a period of four years. This regression model produced an R2 = 88.3, and a slope of -2.99.
a) Interpret the meaning of R2.
b) What is the correlation of Sales and unemployment Rate?
c) If a quarter has an unemployment Rate 1% larger than another, what is the predicted impact on Sales?
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Related Book For
Business Statistics
ISBN: 9780133899122
3rd Canadian Edition
Authors: Norean D. Sharpe, Richard D. De Veaux, Paul F. Velleman, David Wright
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