A company wants to forecast the sales for its product using linear regression. The company has collected
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Question:
A company wants to forecast the sales for its product using linear regression. The company has collected data for the last 8 months, and the sales for each month and the corresponding marketing expenses are given below:
Month | Sales | Marketing Expenses (in $) |
---|---|---|
1 | 600 | 1000 |
2 | 620 | 1200 |
3 | 650 | 1300 |
4 | 680 | 1400 |
5 | 720 | 1600 |
6 | 750 | 1700 |
7 | 780 | 1900 |
8 | 800 | 2000 |
The company wants to use marketing expenses as a predictor variable to forecast sales for the next month. Use linear regression to estimate the relationship between sales and marketing expenses and forecast the sales for the next month if the marketing expenses are $2200.
Related Book For
Complete Business Statistics
ISBN: 9780077239695
7th Edition
Authors: Amir Aczel, Jayavel Sounderpandian
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