0.65264825 R Square 0.611783338 Error 2.222508989 cions 20 df SS 157 7777145
To predict the market share of one of their products, a manufacturer of consumer electronics products hired a market research company to conduct a study that relates market share in a particular geographic region (in %) to the average annual household income and the number of retail outlets per 100,000 residents. The results of a multiple regression model to predict market share from Household income (in thousands of dollars) and number of outlets per 100,000 residents are given below.
a) How much of the variation in market share can this model predict? Is this statistically significant?
b) Someone claims that each additional outlet will increase the market share by more than 1.5%, regardless of what the household income is. Perform the appropriate hypothesis test to check this claim with a 5% significance level.
c) What increase in market share would your model predict for every two additional retail outlets in a region where the annual household income is $75,000? Find a 95% confidence interval for this increase.
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