Statistical models help us describe and summarize relationships between variables. Understanding how process variables relate to each other helps businesses predict and improve performance. A marketing manager wants to understand the relationship between advertising and sales. When a new advertising campaign rolls out, they will look at the impact on total sales to determine if it is having a positive influence on sales, and if the cost is truly making a big enough difference.

Review the Advertising vs$.$ Sales chart. Note the scatter plot and the regression equation in the chart. You can review the same data and chart in Excel, if desired.

Respond to the following:

Do you observe a relationship between both variables?

What does the slope tell us$?$ Is the slope significant?

What is the intercept? Is it meaningful?

What is the value of the regression coefficient, r$?$ What is the value of the coefficient of determination, r$^2?$ What does r$^2$ tell us$?$

Share a business scenario in which using a model could be beneficial.

Response Requirements

By Thursday, respond to the prompt above in a minimum of $175$ words.

By Monday, post a total of $3$ substantive responses over $2$ separate days for full participation. This includes your initial post and $2$ replies to classmates or your faculty member.

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