SCENARIO 13-10 The management of a chain electronic store would like to develop a model for predicting the weekly sales (in thousands of dollars)for individual stores based on the number of customers who made purchases.A random sample of 12 stores yields the following results:
-Referring to Scenario 13-10, 93.98% of the total variation in weekly sales can be explained by the variation in the number of customers who make purchases.

Question

SCENARIO 13-10 The management of a chain electronic store would like to develop a model for predicting the weekly sales (in thousands of dollars)for individual stores based on the number of customers who made purchases.A random sample of 12 stores yields the following results: 
-Referring to Scenario 13-10, 93.98% of the total variation in weekly sales can be explained by the variation in the number of customers who make purchases.

Quizplus · Accepted Answer

This statement indicates a high degree of correlation between weekly sales and the number of customers, meaning that changes in the number of customers can be used to predict changes in weekly sales with a high level of accuracy. Therefore, it is likely that a significant portion of the variation in weekly sales can be explained by the variation in the number of customers who make purchases. The statement indicates a high correlation between the number of customers and weekly sales, with 93.98% of the variation in sales being explained by the number of customers, therefore it is true.

SCENARIO 13-10 the Management of a Chain Electronic Store Would