Question 1. 1. (TCO E) McCave Development Enterprises is considering whether to build a shopping mall in Statesville. The manager wants you to analyze the relationship between mall size and the rate of return on invested capital. You select a random sample of 16 cities similar to Statesville in demographic and economic characteristics and collect the following data on FOOTAGE (in 10,000 square feet) and RETURN (rate of return as a %).
Q2) Correlations: RETURN, FOOTAGE
Pearson correlation of RETURN and FOOTAGE = -0.954
P-Value = 0.000
a. Analyze the above output to determine the regression equation.
b. Find and interpret βˆ1in the context of this problem.
c. Find and interpret the coefficient of determination (r-squared).
d. Find and interpret coefficient of correlation.
e. Does the data provide significant evidence (a = .05) that Footage can be used to predict Return? Test the utility of this model using a two-tailed test. Find the observed p-value and interpret.
f. Find the 95% confidence interval for the mean rate of return on capital investment for malls that have square footage of 150,000. Interpret this interval.
g. Find the 95% prediction interval for the rate of return on capital investment for a mall that has square footage of 150,000. Interpret this interval.
h. What can we say about the rate of return on capital investment for a mall that has square footage of 75,000?
(Points : 48)
1. (TCO E) The manager of a retail outlet suspects that sales of air conditioners are associated with the price of the air conditioners, as well as the mean temperature. Twelve weeks are selected at random. The results are found in the MINITAB printout below.
17 5 5 12 8 5 8 16 14 12 22
15 5 8 17 5 4 2 22 17 20 23
If you choose a tire at random, then find the probability that the tire
a. was made by Michelin.
b. was made by Goodyear and was defective.
c. was not defective, given that the tire was made by Bridgestone. (Points : 18)