6. The following data show the annual advertising expenditure in millions of dollars and the market share for six automobile companies (Advertising Age, June 23, 2006).

a. Develop a scatter diagram for these data with the advertising expenditure as the independent variable and the market share as the dependent variable.

b. What does the scatter diagram developed in part

(a) indicate about the relationship between the two variables?

c. Use the least squares method to develop the estimated regression equation.

d. Provide an interpretation for the slope of the estimated regression equation.

e. Suppose that Honda Motor Co. believes that the estimated regression equation developed in part

(c) is applicable for developing an estimate of market share for next year.
Predict Honda’s market share if they decide to increase their advertising expenditure to $1200 million next year.