Developing a linear regression model using the given data.
Carpet City wants to build up a means to forecast its carpet sales. The store manager believes to store's sales are directly related to the number of new housing starts in town. The manager gathered data from county records on monthly house construction permits and from store record on monthly sales. These data are as follows:
|
Monthly Carpet
|
Monthly Construction
|
|
Sales (1,000 yd.)
|
Permits
|
|
5
|
21
|
|
10
|
35
|
|
4
|
10
|
|
3
|
12
|
|
8
|
16
|
|
2
|
9
|
|
12
|
41
|
|
11
|
15
|
|
9
|
18
|
|
14
|
26
|
Enlarge a linear regression model for these data and forecast carpet sales if 30 construction permits for new homes are filed.