QUESTION SEVEN a) In regression analysis, you determine the intercept value of the model to be 1000 and the slope value to be 50. What is the resulting forecast value using this model if the value of the independent variable X is 12. b) Cengiz Haksever runs an Istanbul high-end jewelry shop. He advertises weekly in local Turkish newspapers and is thinking of increasing his ad budget. Before doing so, he decides to evaluate the past effectiveness of these ads. Five weeks are sampled, and the data are shown in the table below: SALES AD BUDGET THAT WEEK (K100s) 5 IL 3 7 2 8 (K1,000s) 11 6 10 6 12 Develop a regression model to help Cengiz evaluate his advertising 2

QUESTION SEVEN a) In regression analysis, you determine the intercept value of the model to be 1000 and the slope value to be 50 . What is the resulting forecast value using this model if the value of the independent variable X is 12 . b) Cengiz Haksever runs an Istanbul high-end jewelry shop. He advertises weekly in local Turkish newspapers and is thinking of increasing his ad budget. Before doing so, he decides to evaluate the past effectiveness of these ads. Five weeks are sampled, and the data are shown in the table below: Develop a regression model to help Cengiz evaluate his advertising