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Question: A product manufacturer wishes to determine the relationship between the shelf space of the product and its sales. Past data indicates the following sales and shelf space in its stores.
Sales Shelf Space
$25,000 5 square feet
$15,000 3.2 square feet
$28,003 5.4 square feet
$30,000 6.1 square feel
$17500 4.3 square feel
$16,000 3.1 square feet
$12,000 2.6 square feet
$21.000 6.4 square feet
$19,000 4.9 square feet
$27,000 5.7 square feel
Using these data points, apply simple linear regression, and examine the residual plot. What do you conclude? Construct a scatter chart and use the Excel Trendline feature to identify the best type of curvilinear trendline that maximizes R2.
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