Question
the tire shop manager wants to predict the number of tires sold each month. He uses is a linear function of the number of tires
the tire shop manager wants to predict the number of tires sold each month. He uses is a linear function of the number of tires sold fromthe amount of money invested in advertising. He randomly selects 6 months of data consisting of tire sales (in thousands of tires) and advertising expenditures (in thousands of dollars). Based on the data set with 6 observations, the simple linear regression model yielded the following results:
xi=24xi=24;xi2=124xi2=124;yi=42yi=42;(xiyi)=196(xiyi)=196;SSE= 16;SSTO= 44
Use the simple linear regression model to perform thefollowing stepof regression analysis:
Calculate the correlationcoefficient.
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