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The sales for Sunflowers Apparel, a chain of upscale clothing stores for women, have increased during the past 12 years as the chain has expanded
The sales for Sunflowers Apparel, a chain of upscale clothing stores for women, have increased during the past 12 years as the chain has expanded the number of stores open. Until now, Sunflowers managers selected sites based on subjective factors, such as the availability of a good lease or the perception that a location seemed ideal for an apparel store. As the new director of planning, you need to develop a systematic approach that will lead to making better decisions during the site selection process. As a starting point, you believe that the size of the store significantly contributes to store sales, and you want to use this relationship in the decision-making process. To examine the relationship, a sample of 14 stores was selected. The results are recorded in the accompanying table: Store Size (thousands of sq. ft) | Annual Sales (millions of $) 1 1.7 3.7 2 1.6 3.9 3 2.8 5.7 4 5.6 9.5 5 1.3 3.4 6 2.2 5.6 1.3 3.7 8 1. 1 2.7 9 3.2 5.5 10 1.5 2.9 11 5.2 10.7 12 4.6 7.6 13 5.8 11.8 14 3.0 4.1a). Explain carefully, which of the variables above is the independent variable and which is the dependent variable. b). Obtain and print a scattergram of the above data using Minitab . Does it seem that the two variables are somewhat related? If yes, how do they seem to be related? c). Find the equation of the sample regression line. d). Interpret the meaning of the coefficients of the equation of the sample regression line. e). At 5% level of significance, is there sufficient evidence of a linear relationship between the store size and the annual sales? f). At 5% level of significance, can we conclude that as the size of the store increases so does the annual sales? g). How useful is the linear model you have established in this problem. Assess the model and explain carefully the procedures used in the assessment. h). Estimate the slope of the actual equation of the regression line using a 95% confidence interval and interpret this interval
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