Consider the dataset below and respond to the questions that follow: Advertisement ($'000)Sales ($'000) 10684489 10265611 7673290
No answer yet for this question.
Ask a Tutor
Question:
Consider the dataset below and respond to the questions that follow:
Advertisement ($'000)Sales ($'000)
10684489
10265611
7673290
8854113
11564883
11465425
8924414
9385506
7693346
6773673
11846542
10095088
- Construct a scatter plot with this data.
- Do you observe a relationship between both variables?
- Use Excel to fit a linear regression line to the data. What is the fitted regression model? (Hint: You can follow the steps outlined in Fitting a Regression on a Scatter Plot on page 497 of the textbook.)
- What is the slope? What does the slope tell us?Is the slope significant?
- What is the intercept? Is it meaningful?
- What is the value of the regression coefficient,r? What is the value of the coefficient of determination, r^2? What does r^2 tell us?
- Use the model to predict sales and the business spends $950,000 in advertisement. Does the model underestimate or overestimates ales?
Posted Date: