1. For the forecast of the wingle outcome value resulting for Yo the predio- tion Interval is as follows: - *}' Jutt 12 111.251 - . 2. For the forecast of the mean or conditional expectation ELY...X...), the confidence interval for predictions is 1 111261 - where and the These prediction and confidence intervals have the same interpretation indicated in Chapters 7 and a for confidence intervals. The probability is 1 - that this interval includes the true prediction of Yor the true mean of Y when X has the value Note that in most applications the central limit theorem applies for the predicted value, et. and the intervals are appropriate u9 Example 11.3 Forecasting Retail Sales (Regression Model Forecasting) We illustrate the interval computation using the retail sales and disposable income from Example 11.2 We have been asked to forecast retail sales per household for a proposed new store to be located in a market area with dispensable income per house hold of $5,000 Determine both the the actual value for the first year and the expected value for the long run. In addition, we have been asked to compute prediction interval and confidence intervals for these forecasts. Use the data file Retail Sales