Flat-screen TV Sales Study Refer to the management scenario of Example 12.1. Calculate the sample coefficient of determination, r², between the number of ads placed and flat-screen TV sales. Comment on the strength of the linear relationship.

Question

Flat-screen TV Sales Study

Refer to the management scenario of Example 12.1. Calculate the sample coefficient of determination, r², between the number of ads placed and flat-screen TV sales. Comment on the strength of the linear relationship.

Accepted Answer

The coefficient of determination, r², between x (number of ads placed) and y (weekly sales of flat-screen TVs) is found by squaring the correlation coefficient, r.

Given r = 0.8198, then r² = [latex](0.8198)^2[/latex] = 0.6721 (or 67.21%).

This means that the number of newspaper advertisements placed, x, explains 67.21% of the variation in flat-screen TV sales, y. Newspaper advertisements therefore have a moderate to strong impact on weekly flat-screen TV sales.

Question 12.3: Flat-screen TV Sales Study Refer to the management scenario ......

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