Advanced: Calculation of co-efficient of determination A management accountant is analysing data relating to retail sales on
Question:
Advanced: Calculation of co-efficient of determination A management accountant is analysing data relating to retail sales on behalf of marketing colleagues. The marketing staff believe that the most important influence upon sales is local advertising undertaken by the retail store. The company also advertises by using regional television areas. The company owns more than 100 retail outlets. and the data below relate to a sample of 1 o representative outlets
The data have been partly analysed and the intermediate results are available below
You are required to examine closely, using co-efficients of determination, the assertion that the level of sales varies more with movements in the level of local advertising than with changes in the level of regional company advertising. (8 marks)
Note that the co-efficient of determination for y and x, may be calculated from
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