Kurt€™s Hardware Store advertises and sells snow blowers each season. The following table provides the annual demand, level of advertising, in dollars, and snowfall, in inches, for the past eight years:

(a) Develop a simple regression model to predict the demand for snow blowers based on the number of advertising dollars spent.
(b) What percentage of the demand variation is explained by the level of advertising?
(c) Next year€™s advertising budget is $2,600. What is the predicted demand for snow blowers?

Transcribed Image Text:

DEMAND UNITS) SNOWFALL (INCHES) 82 64 52 60 58 YEAR ADVERTISING $4,000 $3,500 $1,800 $2,800 $3,000 $2.400 $2,600 $2.200 38 26 43 30 34 37 53