QUESTION 1 (15 MARKS)

The shell service station has recorded past fuel price per litre and the recorded profits.

Period	Unit Price		Profits
Jan-20		10	15
Feb-20		12	10
Mar-20		11	13
Apr-20		14	15
May-20		10	25
Jun-20		12	27
Jul-20		14	24
Aug-20		11	20
Sep-20		12	27
Oct-20		13	44
Nov-20		12	34
Dec-20		12	17
Jan-21		11	17
Feb-21		14	26
Mar-21		14	28
Apr-21		13	15
May-21		10	17
Jun-21		11	19
Jul-21		12	22

1. Run regression analysis in Excel to establish whether there is a relationship between the variables.

(Take a snapshot of the regression result in your excel and past it in your assignment). [4 marks]

2. Obtain a regression line for the data, and predict profit for a store, assuming sales of $18 million.

[2 marks]

3. Interpret the below of your regression analysis;
   • R square [2 marks]
   • Coefficients [2marks]
   • Residuals [2 marks]
4. What are some of the assumptions implied when using linear regression analysis for the above data?

[3 marks]