Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 = ∑ (X- 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

  1. 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) =

Step by Step Solution

3.36 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

To find the least square regression line for the given data we need to calculate several intermediat... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

9th Edition

1337614689, 1337614688, 9781337668262, 978-1337614689

More Books

Students also viewed these Accounting questions