Problem:
Alan Bissell, a market analyst for City Sound Mart, is analyzing sales of heavy metal CD's. Alan's dependent variable is annual heavy metal CD sales (in $1,000,000's), and his independent variables are teenage population (in 1,000's) and type of sales district (0 = urban, 1 = rural). Regression analysis of the data yielded the following tables.
|
Coefficients |
Standard Error |
t Statistic |
p-value |
| Intercept |
1.7 |
0.384212 |
4.424638 |
0.00166 |
| x1(teenagers) |
0.04 |
0.014029 |
2.851146 |
0.019054 |
| x2(district) |
-1.5666667 |
0.20518 |
-7.63558 |
3.21E-05 |
Required:
For an urban sales district with 10,000 teenagers, Alan's model predicts annual sales of heavy metal CD sales of
i) $524,507
ii) $533,333
iii) $729,683
iv) $21,000,000
v) $2,100,000
Solve the problem and show all work.