Question
A small company is monitoring sales advertisements spending on Facebook versus the number of new customers they are acquiring each month. The marketing person managed
A small company is monitoring sales advertisements spending on Facebook versus the number of new customers they are acquiring each month. The marketing person managed to prepare the following table summarizing last three months activity.
Spend $ Number of new customers
50 20
100 85
125 100
Notes:
1-Round your calculations to three decimal digits
2- Formulas: Linear regression for one variable: Y= α +βX
β = ∑ (Xi - Xm)(Yi-Ym) / ∑ (Xi-Xm)2
α= Ym - β*Xm
where Xm is the mean(average) of X values and Ym is the mean (mean) of Y values
- Find the least square regression line for the above data i.e. the parameters (intercept and slope) of the best fit line
List the following intermediate values of the calculation in the response:
1.Xm =
2.Ym =
3.∑(x-xm)*(y-ym) =
4.∑(x-xm)^2 =
5.Beta(β) =
6.Alpha( α) =
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