Olive to Restaurant, a Cyprus stone grill restaurant offering stone grilled food, is operated by Atticus Constantinou who has been the manager of this restaurant for many years. is situated by the harbor in the historic town of Smallville. As a manager of the restaurant, Atticus needs to investigate the company advertising expenditure and its sales revenue. Atticus believes that the company sales revenue depends on the advertising expenditure as many small companies run advertising to support the selling function. The data of advertising expenditure and weekly sales from last year has been collected and entered on the worksheet entitled OLIVETO.

1. State, giving a brief explanation, which variable would be the dependent variable and which variable would be independent variable using appropriate reference to support your discussion. (2 marks)

2. Draw a scatter plot of this data on graph paper and comment on the association between ‘Advertising Expenditure’ and ‘Weekly Sales’ as indicated by the scatter plot. (3 marks)

3. Calculate average of ‘Advertising Expenditure’ and ‘Weekly Sales’, the Correlation coefficient (R) and Coefficient of Determination (R²) for this data? (4 marks)

4. State the regression equation for this task. (2 marks)

5. Using the equation that you achieved from above estimate the sale revenue if
   1. the advertising expenditure were £100 (2 marks)
   2. the advertising expenditure were £500 (2 marks)

Weekly Advertising Expenditure (X)	Weekly Sales (Y)
2,682	9,051
2,498	9,476
2,603	8,890
2,618	8,103
2,215	7,842
2,654	9,633
2,161	7,399
2,508	8,373
2,178	8,279
2,452	8,244
2,730	8,878
2,541	7,522
1,919	8,091
2,644	8,194
1,671	8,027
2,402	9,361
1,851	6,690
2,271	7,122
2,551	9,247
2,513	8,829
2,331	7,222
1,894	6,151
1,584	7,857
2,044	6,664
1,692	7,660
2,090	8,388
2,692	9,598
1,533	5,524
1,591	6,697
1,812	8,084
1,890	8,267
2,992	8,877
2,138	8,665
1,880	7,904
2,212	7,013
2,849	9,553
2,810	10,319
2,316	8,343
1,888	6,417
1,732	7,873
1,942	8,421
1,845	8,016
2,037	7,440
1,616	7,279
1,756	6,211
2,612	8,104
1,730	7,854
2,525	9,438
1,733	8,108
2,140	7,891
2,584	7,953
1838	7988.56
1519	6448.28

Answer rating: 100% (QA)

The dependent variable would be the weekly sales and the independent variable woul... View the full answer