A division of a multinational retail company prepared a presentation to give at the home office in Paris, France. The presentation includes a scatterplot that shows the relationship between square footage and annual sales in retail outlets owned by the chain. The units in the plot show the size in thousands of square feet and the response in thousands of dollars. A fitted line in the plot is y = 47 + 650x. (a) Interpret the slope and intercept in the fitted line.
(b) To present the model in Europe, the plot must be shown with sales denominated in euros rather than dollars 1use the exchange rate
$1 = €0.822 and size given in square meters rather than square feet (1 square foot = 0.093 square meter). Find the slope and intercept in these new units.
(c) Would the r2 summary attached to the regression model change along with the slope and intercept when the data are changed into euros and meters?
(d) Would se change with the new scales?