Champion Auto Group believes that car sales are closely related to the amount of money the firm spends on advertising and the personal income levels of consumers in various target markets. The company gathered the data on the number of cars of a new model sold in Shanghai given the advertising money (in U.S. dollars) spent and the average personal income of the consumers. The information is shown in the following table:

1. Based on this data, use Excel to develop a multiple regression equation.

2. Interpret the coefficients b₀, b₁, and b₂.

3. Interpret the statistics €œmultiple R€ and the coefficient of determination (R₂) in the regression output.

4. Forecast the car€™s sales if the average personal income of the target market is US$81,000 and the amount spent on advertising is US$52,000.

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Advertising (in U.S. dollars) Personal Income Number of Cars Sold (in U.S. dollars) 20 52 25 14 40 17 30 73 42 35 83 60 48 110 100 52 125 105 28 66 53 22 60 48 47 19 30 26 58 33 10 35 22 13 39 30