What is the y-intercept of the regression equation? What does it mean?

2. Use the regression equation, find the estimated sales if the company spends $22,500 on advertising.

3. If the sales this month is $350,000, what would Laura expect the company spent on advertising?

4. Laura is very excited to see that if there appears to have a relationship between advertising expense and sales. Use the regression equation to find the estimated sales if the company spends $40,000 on advertising. Is it reasonable?

Answer all the points so that I can give you upvote.

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Laura has just started her first job as a marketing analyst at a toy store. Her first assignment is to study the advertising expenses and toys sales of the company during the past 12 months. She wants to know if there is any relationship between advertising expenditure and sales. With the information, she would like make recommendation to her supervisor of an appropriate advertising expense to increase sales of the company. Here is the advertising and sales information Laura obtained from the company database. Monthly Sales 330,250 400,500 352,500 412,500 368,000 Advertising Expenditure $ $ $ $ $ $ $ $ 12,500 20,000 13,500 22,000 15,700 19,800 10,000 23,500 $ $ $ $ $ $ $ $ 395,000 295,000 425,000 Laura has just started her first job as a marketing analyst at a toy store. Her first assignment is to study the advertising expenses and toys sales of the company during the past 12 months. She wants to know if there is any relationship between advertising expenditure and sales. With the information, she would like make recommendation to her supervisor of an appropriate advertising expense to increase sales of the company. Here is the advertising and sales information Laura obtained from the company database. Monthly Sales 330,250 400,500 352,500 412,500 368,000 Advertising Expenditure $ $ $ $ $ $ $ $ 12,500 20,000 13,500 22,000 15,700 19,800 10,000 23,500 $ $ $ $ $ $ $ $ 395,000 295,000 425,000

Answer rating: 100% (QA)

To answer the questions we need to perform a simple linear regression analysis using the advertising expenditure as the independent variable x and the monthly sales as the dependent variable y First l... View the full answer