A large consumer goods company has been studying the effect of advertising on total profits. As part of this study, data on advertising expenditures and total sales were collected for a five-month period and are as follows:
110, 1002 115, 2002 17, 802112, 1202 114, 1502
The first number is advertising expenditures and the second is total sales.
a. Plot the data.
b. Does the plot provide evidence that advertising has a positive effect on sales?
c. Compute the regression coefficients, b0 and b1.