The management of a supermarket wants to find if there is a relationship between the number of

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The management of a supermarket wants to find if there is a relationship between the number of times a specific product is promoted on the intercom system in the store and the number of units of that product sold. To experiment, the management selected a product and promoted it on the intercom system for 7 days. The following table gives the number of times this product was promoted each day and the number of units sold.
The management of a supermarket wants to find if there

a. With the number of promotions as an independent variable and the number of units sold as a dependent variable, what do you expect the sign of B in the regression line y = A + Bx + E will be?
b. Find the least squares regression line Å· = a + bx. Is the sign of b the same as you hypothesized for B in part a?
c. Give a brief interpretation of the values of a and b calculated in part b.
d. Compute r and r2 and explain what they mean.
e. Predict the number of units of this product sold on a day with 35 promotions.
f. Compute the standard deviation of errors.
g. Construct a 98% confidence interval for B.
h. Testing at a 1% significance level, can you conclude that B is positive?
i. Using α = .02, can you conclude that the correlation coefficient is different from zero?

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