The Cotton Mill is anupscale chain of women's clothing stores, located in thesouthwestern United States. Do to recent success, The Cotton Mill'stop management is planning to expand by locating new stores inother regions of the country. The director of planning has beenasked to study the relationship between yearly sales and the storesize. As part of the study, the director selects a sample of 25stores and determines the size of the store in square feet and thesales for the last year. The sample data follows.
Store size (1000s ofsquare feet) Sales (millions of $ )
3.7 9.18
2.0 4.58
5.0 8.22
0.7 1.45
2.6 6.51
2.9 2.82
5.2 10.45
5.9 9.94
3.0 4.43
2.4 4.75
2.4 7.30
0.5 3.33
5.0 6.67
0.40.55
4.27.56
3.12.23
2.64.49
5.29.90
3.38.93
3.27.60
4.93.71
5.55.47
2.98.22
2.27.17
2.34.35
Using store size asthe independent variable, run the data using excel and answer thefollowing: 1. Write the regression equation. 2. Interpret theregression constant and regression coefficient. 3. Forecast a valuefor the dependent variable. 4. Test the significant of theregression coefficient using alpha = .05. 5. Test the overallsignificant of the regression model. 6. Interpret the coefficientof determination.
