6. Morning House is a mail-order firm which carries a wide range of rather expensive art...

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6. Morning House is a mail-order firm which carries a wide rangeof rather expensive art objects for homes and offices. It operatesby advertising a particular item either in selected magazines or ina direct-mail program. Suppose the sales response varies widely byitem and the firm’s management has been unable to predict inadvance which items will sell well and which will not.Consequently, the firm frequently experiences either stock-outs orexcessive inventories. For many of the products Morning Housesells, it is possible to order a limited amount for inventory andto place a subsequent order for delivery within two weeks. Thus, ifthe firm could make a early prediction of the ultimate sales of aproduct, its inventory problems would be greatly reduced. Since ittakes approximately six weeks to receive 90% of the response to agiven campaign, an accurate prediction of total sales made as lateas the end of the first week of receiving orders would be useful.The first week’s sales and total sales of the last 12 campaigns ofthe firm are shown below. Can the first week’s sales be used topredict total sales? * Need help on minitab if this is aregression?

                       First week’s   Total

Campaign     Sales              Sales

1       32                   167

2                     20                   91

3                     114                 560

4                     66                   335

5                     18                   70

6                     125                 650

7                     83                   401

8                     65                   320

9                     94                   470

10                   5                     15

11                   39                   210

12                   50                   265

Answer & Explanation Solved by verified expert
4.0 Ratings (466 Votes)
To predict the total sales using the first week sales we firstneed to determine what type of regression might be    See Answer
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