SUBJECT-STRATEGIC MANAGEMENT Please help me to find the answers as soon as possible. Thank you for your help, have a nice day with your family and friends :) 1. Carpet City wants to develop a means to forecast its carpet sales. The store manager believes that the store's sales are directly related to the number of new housing starts in town. The manager has gathered data from country records on monthly house construction permits and from store records on monthly sales. These data are as follows: Monthly Carpet Sales (1,000 yd.), y Monthly Construction Permits, x 5 21 10 35 4 10 3 12 8 16 2 9 12 41 11 15 9 18 14 26 (a) Develop a linear regression model for these data and forecast carpet sales if 30 construction permits for new homes are filed. (b) Determine the strength of the linear relationship between monthly sales and new home construction by using correlation coefficient and coefficient determination. 2. The Manager of Gilley's Ice Cream Parlor needs an accurate forecast of the demand for ice cream. The store orders ice cream from a distributor a week ahead; if the store orders too little, it loses business and if it orders too much, the extra must be thrown away. The manager believes that a major determinant of ice cream sales is temperature (i.e., the hotter the weather, the more ice cream people buy). Using an almanac, the manager has determined the average daytime temperature for 10 weeks, selected at random, and from store records, he has determined the ice cream consumption for the same 10 weeks. These data are summarized as follows: Week Average Temperature (degrees) Ice Cream Sold (gal.) 1 73 110 2 65 95 3 81 135 4 90 160 5 75 97 6 77 105 7 82 120 8 93 175 9 86 140 10 79 121 (a) Develop a linear regression model for these data and forecast the ice cream consumption if the average weekly daytime temperature is expected to be 85 degrees. (b) Determine the strength of the linear relationship between temperature and ice cream consumption by using correlation and compute the coefficient determination for both variables. 3. Administrators at State University believe that decreases in the number of freshman applications that they have experienced are directly related to tuition increases. They have collected the following enrollment and tuition data for the past decade: Year Freshman Applications Annual Tuition 1 6050 3600 2 4060 3600 3 5200 4000 4 4410 4400 5 4380 4500 6 4160 5700 7 3560 6000 8 2970 6000 9 3280 7500 10 3430 8000 (a) Develop a linear regression model for these data and forecast the number of applications for State University if tuition increases to $9,000 per year and if tuition is lowered to $7,000 per year. (b) Determine the strength of the linear relationship between freshman applications and tuition by using correlation coefficient and coefficient determination. 4. Some members of management of the Fairface Cosmetics Firm believe that demand for its products is related to the promotional activities of local department stores where the cosmetics are sold. However, others in management believe that other factors, such as local demographics, are stronger determinants of demand behavior. The following data for local annual promotional expenditures for Fairface products and local annual unit sales for Fairface lip gloss have been collected from 20 stores selected at random from different localities: Store Annual Unit Sales (1,000s) Annual Promotional Expenditures ($1,000s) 1 3.5 12.6 2 7.2 15.5 3 3.1 10.8 4 1.6 8.7 5 8.9 20.3 6 5.7 21.9 7 6.3 25.6 8 9.1 14.3 9 10.2 15.1 10 7.3 18.7 11 2.5 9.6 12 4.6 12.7 13 8.1 16.3 14 2.5 8.1 15 3.0 7.5 16 4.8 12.4 17 10.2 17.3 18 5.1 11.2 19 11.3 18.5 20 10.4 16.7 (a) Develop a linear regression model for these data. (b) Determine the strength of the linear relationship between sales and expenditures by using correlation coefficient and coefficient determination