• a retailer wants to test a theory about retail turnover in NSW
• they download NSW estimated resident population data (in thousands) for each quarter from March 1990 to December 2015 and the corresponding seasonally adjusted retail turnover figures for NSW (in $million) from the Australian Bureau of Statistics (Australian Economic Indicators, July 2016 and Australian Demographic Statistics, June 2016) and run a regression analysis

i) How well does the regression line fit the observed data? Explain

ii) sample correlation coefficient between the 2 variables in this model, and how can it be interpreted?

iii) write sample regression equation clearly defining the variables you use.

iv) in a way that the retail owner's team could understand, interpret this equation to explain the estimated retail expenditure in Sept quarter 2012 when there was 7,000,707 residents of NSW, and the rate of increase thereafter.

REGRESSION STATISTICS Multiple r 0.98883578 R square 0.9777962 Adjusted r square 0.97757852 Standard error 494.743053 Observations 104 ANOVA Df SS MS F Significance F Regression 1 1099463224 1.1E+09 4491.809 3.70804E-86 Residual 102 24966610.26 244770.7 Total 103 1124429834 Coefficients Standard t. Stat p-value Lower 95% Upper 95% error Intercept -29215.132 636.882281 -45.8721 6.59E-70 -30478.38548 -27951.88 Resident 6.66888805 0.099504513 67.02096 3.71E-86 6.471521318 6.86625478 population