Convenience Shopping. It is rare that you will find a gas station these days tha

Question

Convenience Shopping. It is rare that you will find a gas station these days that only sells gas. It has become more common to find a convenience store that also sells gas. The data in the Excel file Convenience.jmp describe the sales over time at a franchise outlet of a major U.S. oil company. Each row summarizes sales for one day. This particular station sells gas, and it also has a convenience store and a car wash. The column labeled Sales gives the dollar sales of the convenience store, and the column Volume gives the number of gallons of gas sold. For all your calculations, please round round to the nearest thousandth. The only ezception is when you report numerical answers for dollars, in which case round to the nearest hundredth. 1. Write out the population regression model with dollar sales as the response and number of gallons sold as the explanatory variable. Make sure you use correct notation! 2. Using JMP, create a scatterplot of the Sales on Volune. Describe the shape of the relationship between the two variables. 3. Using JMP, fit a simple linear regression model to the data in the scatterplot. Estimate the difference in sales at the convenience store (on average) between days with 3,500 gallons sold and days with 4,000 gallons sold. Show all your work. 4. The scatterplot in question (2) suggests that selling more gas produces increases in sales at the associated store. Does this mean that customers come to the station to buy gas and then happen to buy something at the convenience store, or might the causation work in the other direction? Explain.

Explanation / Answer

1. The regression Model is

Sales = 1148.2169 + 0.3206*Volume

2. From the scatterplot we can say there is a positive linear relationship between the two variable that is

Sales (In dollars) and volume(in gllons).

3. The difference in salea when the volume of gas is

when Volume = 3500

Sales = 1148.2169 + 0.3206*3500

=2270.317

and when Volume = 4000

Sales = 1148.2169 + 0.3206*4000

=2430.617

Hence the difference in the sale is (2430.617-2270.317)

That is of $160.30

4. The scatterplot indicates that the selling more gas produces increse in sales at associate store. It indicates that the customer come to buy a gas and then happen to buy something at the store. it may also possible that the customer come to buy something in the store and then he also buy the gas.

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