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Mumbai Electronics is planning to extend its marketing region from the western United States to include the midwestern states. To predict its sales in this new region, the company has asked you to develop a linear regression of DVD system sales on price, using the following data supplied by the marketing department:
Sales 418 384 343 407 432 386 444 427
Price 98 194 231 207 89 255 149 195
a. Fit a linear regression model to the data by OLS and interpret the results.
b. Construct the ANOVA table for the regression and interpret the F-test.
c. Compute the R2 and interpret it.
d. Find the correlation coefficient, r, and explore the relationship between r & R2.
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LINEAR PROGRAMMING MODELS
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