Table 1: Sales and Advertising Data

Agent Sales Advertising

82 192000 15600
90 174000 12000
81 156000 15000
83 144000 9000 SUMMARY OUTPUT
89 120000 11400
87 120000 8400 Regression Statistics
182 115200 9360 Multiple R 0.9605935959
84 114000 11400 R Square 0.9227400564
190 104400 7200 Adjusted R Square 0.9223498547
32 96000 7800 Standard Error 8859.0602059
62 96000 7800 Observations 200
86 96000 3600
181 93600 9000 ANOVA
88 90000 6600 df
40 87000 6000 Regression 1
70 87000 6000 Residual 198
183 86400 5400 Total 199
31 78000 7500
61 78000 7500 Coefficients
85 78000 5400 Intercept 3387.4883764
189 72000 6840 Advertising 11.744776894
187 72000 5040
33 72000 4500
63 72000 4500
184 68400 6840 (Q1a)
52 64000 5200 Sales vs Advertis
39 60000 5700 18000
69 60000 5700 16000
37 60000 4200 14000 f(x) = 0.078565992762547 x − 65.4385962677078
67 60000 4200 12000
60 58000 4000
10000
132 57600 4680
8000
162 57600 4680
186 57600 2160 6000

34 57000 5700 4000

64 57000 5700 2000

188 54000 3960 0
0 50000 100000 150
140 52200 3600
170 52200 3600
51 52000 5000
12 48000 3900
53 48000 3000
36 48000 1800
66 48000 1800
131 46800 4500
161 46800 4500
185 46800 3240
38 45000 3300
68 45000 3300
20 43500 3000
133 43200 2700
163 43200 2700
59 40000 3800
57 40000 2800
11 39000 3750
35 39000 2700
65 39000 2700
72 38400 3120
152 38400 3120
54 38000 3800
139 36000 3420
169 36000 3420
137 36000 2520
167 36000 2520
13 36000 2250
80 34800 2400
160 34800 2400
134 34200 3420
164 34200 3420
2 32000 2600
92 32000 2600
56 32000 1200
71 31200 3000
151 31200 3000
19 30000 2850
58 30000 2200
17 30000 2100
10 29000 2000
100 29000 2000
112 28800 2340
73 28800 1800
153 28800 1800
136 28800 1080
166 28800 1080
14 28500 2850
138 27000 1980
168 27000 1980
120 26100 1800
1 26000 2500
91 26000 2500
55 26000 1800
79 24000 2280
159 24000 2280
77 24000 1680
157 24000 1680
3 24000 1500
93 24000 1500
16 24000 900
111 23400 2250
135 23400 1620
165 23400 1620
172 23040 1872
74 22800 2280
154 22800 2280
18 22500 1650
113 21600 1350
180 20880 1440
9 20000 1900
99 20000 1900
7 20000 1400
97 20000 1400
15 19500 1350
22 19200 1560
102 19200 1560
192 19200 1560
76 19200 720
156 19200 720
4 19000 1900
94 19000 1900
171 18720 1800
119 18000 1710
78 18000 1320
158 18000 1320
117 18000 1260
30 17400 1200
110 17400 1200
200 17400 1200
173 17280 1080
114 17100 1710
42 16000 1300
6 16000 600
96 16000 600
21 15600 1500
101 15600 1500
191 15600 1500
75 15600 1080
155 15600 1080
8 15000 1100
98 15000 1100
50 14500 1000
179 14400 1368
177 14400 1008
23 14400 900
103 14400 900
193 14400 900
116 14400 540
174 13680 1368
118 13500 990
41 13000 1250
5 13000 900
95 13000 900
29 12000 1140
109 12000 1140
199 12000 1140
27 12000 840
107 12000 840
197 12000 840
43 12000 750
115 11700 810
122 11520 936
176 11520 432
24 11400 1140
104 11400 1140
194 11400 1140
178 10800 792
130 10440 720
49 10000 950
47 10000 700
142 9600 780
26 9600 360
106 9600 360
196 9600 360
44 9500 950
121 9360 900
175 9360 648
28 9000 660
108 9000 660
198 9000 660
150 8700 600
123 8640 540
46 8000 300
141 7800 750
25 7800 540
105 7800 540
195 7800 540
48 7500 550
129 7200 684
127 7200 504
143 7200 450
124 6840 684
45 6500 450
149 6000 570
147 6000 420
126 5760 216
144 5700 570
128 5400 396
146 4800 180
125 4680 324
148 4500 330
145 3900 270
 SS MS F Significance F
185594663196.99 185594663196.99 2364.78 0.00
15539623651.01 78482947.73
201134286848.00

Standard Error t Stat P-value Lower 95% Upper 95%

886.596357013558 3.8207785872594 0.000178019 1639.1048646028 5135.8718882
0.24151809943731 48.628971994815 4.76236E-112 11.268498980474 12.221054807

Qd = 3387 + 11Advertising (Q1b) Qd 9,260

Advertising 500
Advertising Coeff 11.744776894
Sales vs Advertising Constant 3387.4883764

547 x − 65.4385962677078 (Q1c) Qd 10,000

Advertising 563
Advertising Coeff 11.744776894
Constant 3387.4883764

10000
6612.5116236
563.01721892

100000 150000 200000 250000

 Lower 95.0% Upper 95.0%
1639.1048646 5135.8718882
11.26849898 12.221054807
 Table 2: Data on Transit Riders
Year Weekly Riders ('000) Price per Ride (Cents) Population ('000) Income
1981 1,200 15 1,800 2,900
1982 1,190 15 1,790 3,100
1983 1,195 15 1,780 3,200
1984 1,110 25 1,778 3,250
1985 1,105 25 1,750 3,275
1986 1,115 25 1,740 3,290
1987 1,130 25 1,725 4,100
1988 1,095 30 1,725 4,300
1989 1,090 30 1,720 4,400
1990 1,087 30 1,705 4,600
1991 1,080 30 1,710 4,815
1992 1,020 40 1,700 5,285
1993 1,010 40 1,695 5,665
1994 1,010 40 1,695 5,800
1995 1,005 40 1,690 5,900
1996 995 40 1,630 5,915
1997 930 75 1,640 6,325
1998 915 75 1,635 6,500
1999 920 75 1,630 6,612
2000 940 75 1,620 6,883
2001 950 75 1,615 7,005
2002 910 100 1,605 7,234
2003 930 100 1,590 7,500
2004 933 100 1,595 7,600
2005 940 100 1,590 7,800
2006 948 100 1,600 8,000
2007 955 100 1,610 8,100
Parking Rate (Cents) SUMMARY OUTPUT
50
50 Regression Statistics
60 Multiple R 0.9798036837
60 R Square 0.9600152586
60 Adjusted R Square 0.9527453056
70 Standard Error 20.489844477
75 Observations 27
75
75 ANOVA
80 df SS
80 Regression 4 221760.32468
80 Residual 22 9236.34198699
85 Total 26 230996.666667
100
105 Coefficients Standard Error
105 Intercept 85.439240988 492.804627891
105 Price per Ride (Cents) -1.6174841936 0.49597582676
110 Population ('000) 0.6437694982 0.26235808531
125 Income -0.0474748146 0.01231141443
130 Parking Rate (Cents) 1.9437908125 0.34915601312
150
155
165
175
175
190
200
 MS F Significance F
55440.08117 132.05247136 4.828379E-15
419.83372668

t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
0.173373455 0.8639431878 -936.57500453 1107.4534865 -936.57500453 1107.4534865
-3.2612157817 0.0035760101 -2.646075103 -0.5888932841 -2.646075103 -0.5888932841
2.4537818127 0.0225223262 0.0996721309 1.1878668654 0.0996721309 1.1878668654
-3.8561624963 0.0008560001 -0.0730071254 -0.0219425038 -0.0730071254 -0.0219425038
5.5671125212 1.350419E-05 1.2196855604 2.6678960646 1.2196855604 2.6678960646