Jones Corp. has noticed that sales of its product seem to be related to a variable it calls Gamma. It has developed the data shown below. Develop a simple linear regression from the data and tell Jones what the sales forecast will be if Jones expects Gamma to be 16 (round your forecast to the nearest number of whole units).
A)31
B)33
C)28
D)34

Question

Jones Corp. has noticed that sales of its product seem to be related to a variable it calls Gamma. It has developed the data shown below.  Develop a simple linear regression from the data and tell Jones what the sales forecast will be if Jones expects Gamma to be 16 (round your forecast to the nearest number of whole units).
A)31 
B)33 
C)28 
D)34

Quizplus · Accepted Answer

You must determine the value of a and b in a simple linear regression.b = [1904 - (5)(13.6)(27.2)]/[960 - (5)(13.6)²] = 54.4/35.2 = 1.55a = (27.2) - (1.55)(13.6) = 27.2 - 21.08 = 6.12Sales = 6.12 + 1.55(16) = 30.92.