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A Local Tire Dealer Wants to Predict the Number of Tires

Question 122

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A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of tire sales (in thousands of tires)and advertising expenditures (in thousands of dollars).Based on the data set with 6 observations,the simple linear regression equation of the least squares line is ŷ = 3 + 1x. A local tire dealer wants to predict the number of tires sold each month.He believes that the number of tires sold is a linear function of the amount of money invested in advertising.He randomly selects 6 months of data consisting of tire sales (in thousands of tires)and advertising expenditures (in thousands of dollars).Based on the data set with 6 observations,the simple linear regression equation of the least squares line is ŷ = 3 + 1x. MSE = 4 Using the sums of the squares given above,determine the 90 percent confidence interval for the mean value of monthly tire sales when the advertising expenditure is $5,000. MSE = 4
Using the sums of the squares given above,determine the 90 percent confidence interval for the mean value of monthly tire sales when the advertising expenditure is $5,000.

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[6.08,9.92]
Ŷ = 3 + 1(5)= 8
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