The Commerce Department also has data available on number of shopping centers and retail sales for the South Central states. The data are given below:
Number of Retail Sales
State Shopping Centers ($ billion)
Kentucky 593 11.7
Tennessee 1137 19.1
Alabama 601 13.2
Mississippi 418 7.2
Arkansas 339 6.4
Louisiana 676 15.6
Oklahoma 556 11.4
Texas 2824 72.7
(a) Find the linear regression model for the South Central states.
(b) How does the equation for the South Central states compare to the one you found for the North Central states?
(c) Would you have expected them to be exactly the same? Why or why not?
(d) What similarities would you expect them to have? What differences?
(e) Combine the data from the North Central and South Central states and find the linear regression model for the combined data.
(f) Do you think that the individual models are better or worse than the combined model? On what criteria do you base your conclusion?