Solve for the y-intercept and the slope. Form the equation of the regression line that describes the relationship between the two variables. Predict the profit of the fashion boutique business when the store measures 3,800 square feet. Explain the result

Solve for the y-intercept and the slope. Form the equation of the regression line that describes the relationship between the two variables. Predict the profit of the fashion boutique business when the store measures 3,800 square feet. Explain the result

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.4: Multiple Regression Models

Problem 15P: Stock market analysts are continually looking for reliable predictors of stock prices. Consider the...

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

Solve for the y-intercept and the slope.
Form the equation of the regression line that describes the relationship between the two variables.
Predict the profit of the fashion boutique business when the store measures 3,800 square feet. Explain the result.

n
ху-
y
r=
21
2-
x² -E
n
n
(8x3781)-(212x129)
V[(8x6246)-(212)²] [(8×2313)-(129)²]
2900
5024x1863
=0.948

FORECASTING - Linear Regression
General instruction: Solve the following problem as directed. Show your solutions. All computed
values should be reunded off to three decimal places. Show your answers clearly.
Lizzie wants to open a fashion boutique business. Before selecting a location, she
would like to be able to predict the profit in pesos that the store maybe expected to earn per
hundred square feet of selling space. She gathers the following data:

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