Question

Mark Gershon, owner of a musical instrument distributorship, thinks that demand for guitars may be related to the number of television appearances by the popular group Maroon 5 during the previous month. Gershon has collected the data shown in the following table:

Maroon 5 TV Appearances 3 3 7 5 9 6
Demand for Guitars 3 6 8 5 11 8

Using the least-squares regression method, the equation for forecasting is (round your responses to four decimal places):
Y = 0.9333 + 1.0727 x

Answer 1

Using least-squares regression, the demand for guitars is found to be related to Maroon 5's TV appearances with a regression equation Y = 0.9333 + 1.0727x. The slope indicates an increase in demand by roughly 1.0727 units per TV appearance, and the intercept represents the baseline demand.

Step-by-step explanation:

Using the least-squares regression method, the relationship between the number of television appearances by Maroon 5 and the demand for guitars has been modeled. The corresponding regression equation, as provided, is Y = 0.9333 + 1.0727x, where 'Y' represents the demand for guitars and 'x' represents the number of Maroon 5 TV appearances.

The coefficients in the equation give us specific information: The slope of 1.0727 suggests that for every additional TV appearance by Maroon 5, the demand for guitars increases by approximately 1.0727 units. Meanwhile, the intercept 0.9333 is the predicted demand for guitars when Maroon 5 makes no TV appearances. To forecast future demand using this model, we would plug in the number of anticipated TV appearances into 'x' and solve for 'Y'.