Mktg 301 Essay

4378 WordsApr 4, 201318 Pages
7) Data from a small bookstore are shown in the accompanying table. The manager wants to predict Sales from Number of Sales People Working. Number of sales people working | Sales (in $1000) | 4 | 12 | 5 | 13 | 8 | 15 | 10 | 16 | 12 | 20 | 12 | 22 | 14 | 22 | 16 | 25 | 18 | 25 | 20 | 28 | x=11.9 | y=19.8 | SD(x)=5.30 | SD(y)=5.53 | a) Find the slope estimate, b1. Use technology or the formula below to find the slope. b1=rsysx Enter x,y Data in TI-84 under STAT > STAT > CALC > 8: LinReg(a+bx) b1=1.023 b) What does b1 mean, in this context? The slope tells how the response variable hanges for a one unit step in the predictor Thus, an additional; $1,023 of sales associated with each additional sales…show more content…
Events A and B are independent when P(B|A) = P(B). To determine wheter having a cell phone and having a landline are indepented, find P(landline|cell phone) and P(landline). Recall from part a) that P(landline) =0.628 PBA=P(A and B)P(A) Use the formula to find P(landline|cell phone) Plandlinecell phone=P(landline and cell phone)P(cell phone) Since the contingency table shows that P(landline and cell phone)=0.545 and P(cell phone)=0.871, substitute these values into the equation. Divide to find the conditional probability, rounding to three decimal places. Plandlinecell phone=0.5450.871=0.626 Thus, P(landline|cell phone)=0.626 and P(landline)=0.628. Because 0.626 is very close to 0.628, having a cell phone and having a landline are probably independent. Of the households surveyed, 62.6% with cell phones had landlines, and 62.8% of all households did. 16) A marketing agency has developed three vacation packages to promote a timeshare plan at a new resort. They estimate that 30% of potential customers will choose the Day Plan, which does not include overnight accommodations; 30% will choose the Overnight Plan, which includes one night at the resort; and 40% will choose the Weekend Plan, which includes two nights. a) Find the expected value of the number of nights that potential customers will need Vacation Package | Nights Included | Probability P(X=x) | | Day Plan | 0 | 30100=0.3 | | Overnight Plan | 1 | 30100=0.3 | | Weekend Plan | 2 | 40100=0.4 |

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