A corporation owns several companies.The strategic planner for the corporation believes that dollars spent on advertising can to some extent be a predictor of total sales dollars.As an aid in long-term planning, she gathers the following sales and advertising information from several of the companies for 1993 (in $ millions):

Advertising Sales

12.5 148

3.7 55

21.6 338

60.0 994

37.6 541

6.1 89

16.8 126

41.2 379

Use the printouts on the following page to answer the following questions

1.Which variable is the independent variable (be specific)?____________________

2.Which variable is the dependent variable (be specific)? ___________________

3.Give the prediction equation.________________________________________

4.What is the value of the slope?___________________

5.What is the value of the y-intercept?_______________

6.If advertising increases by $1,000,000, sales will increase by $ __________________________.

7.If advertising equals zero, sales will equal ___________________________.

8.________% of the variation in sales can be explained by the variation in advertising.

9.Give the value of the correlation coefficient._______

10.Interpret the value of the correlation coefficient._________________________________

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