Question

The 1-85 Carpet Outlet wants to develop a means to forecast its carpet sales manager believes housing starts in town. The manager has gathered data from coun that the store's sales are directly related to the number of new ty records of monthly ouse construction permits and from store records on monthly sales. These data are as follows: MONTHLY CARPET SALES (¡ooosyd) MONTHLY CONSTRUCİON PERMITS 5 12 30 14 5 10 14 20 16 31 16 a. Develop a linear regression model for this data and forecast carpet sales if 25 construction permits for new homes are filed. b. Determine the strength of the causal relationship between monthly sales and new home construction using correlation.

Answer 1

morthly coxpet monlu constuctfion Peamits ta 30 12 o) Altiner segession model tis dela gien Y 41X-338 reu, homes are filled is Y o.42gsx 2S-338 -l3S-338 Y 9.3935 b) we have find co melafion bein monthly aleg 8 ne home qiven bg By Usi M3- ExCEL age of is 11 Hence o g o then, mordt Seles neus home ahe higly Postively Cometateg