Executives at the same highend specialty supermarket in Exercise 35 are trying to determine the best location for a new store. They believe that sales are also related to the total number of housing units in the towns. Based on census data, they would like to develop a model to describe this relationship.
a) Examine a scatterplot and describe the general relationship between Sales and Housing Units in the town.
c) The marketing manager fit the regression line. What is the equation of that line?
d) Using this model, predict the annual sales of a supermarket of this type in a town that has 100,000 housing units.
e) Do you have any reservations about the prediction you found in (d)? Explain.
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