Is the amount of money spent by companies on advertising a function of the total revenue of the company? Shown are revenue and advertising cost data for 10 companies published by Advertising Age.

Use the data to develop a regression line to predict the amount of advertising by revenues. Compute s_e and r². Assuming α = .05, test the slope of the regression line. Comment on the strength of the regression model.

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Company Procter & Gamble AT&T Advertising ($ millions) Revenues ($ billions) 80.5 132.0 4.6 3-3