(Solution) - Sales and Marketing Management determined the effective buying income EBI -(2025 Original AI-Free Solution)

Paper Details

Sales and Marketing Management determined the "effective buying income" (EBI) of the average household in a state. Can the EBI be used to predict retail sales per household in the store-group category "eating and drinking places"?
a. Use the data for 13 states given in the table below to find the least squares line relating retail sales per household (y) to average household EBI (x).
b. Plot the least squares line, as well as the actual data points, on a scatter plot.
c. Based on the graph, part b, give your opinion regarding the predictive ability of the least squares line.
d. Find a 95% confidence interval for the slope of the line.
e. Use the results, part d, to assess the adequacy of the straight-line model.