PART A: Scatter Plot and Regression Analysis

1. Complete in the Week 7 Assignment Excel Template.Develop a scatter plot that accuratelydepictsdata contained inTable 1(foundin the Week 7 AssignmentExcel Template).

2. Make and support two conclusions regarding the relationship between profits and sales levels that can be made from the scatter plot.

In my opinion, based on table one, it appears that profits are low compared to sales. The company would need to look into what is causing low profits compared to the sales forecast and adjust based on this information.

3.Complete in the Week 7 Assignment Excel Template.Compute the regression. Use the Excel Linear Regression feature andTable 1 data (found in the Excel template) in the scenario to develop abest-fit linear equation of the form Y = a + b1 X1 where:

• Y is the profit.
• X1 is the sales level.
• a is the intercept from the regression analysis.
• b1 is the coefficient of X1 from the regression analysis.

4. Interpret the results of your regression by doing the following:

• Identify and interpret the r Square statistic from the regression analysis.
  • [Answer here]

• Interpret the meaning ofthe numerical values of a and b1 estimated in the context of this problem.
  • [Answer here]

• Identify and interpret the t statistics for a and b1.
  • [Answer here]