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Advertisement ($'000) Sales ($'000) 1068 4489 1026 5611 767 3290 885 4113 1156 4883 1146 5425 892 4414 938 5506 769 3346 677 3673 1184
Advertisement ($'000) Sales ($'000)
1068 4489
1026 5611
767 3290
885 4113
1156 4883
1146 5425
892 4414
938 5506
769 3346
677 3673
1184 6542
1009 5088
- Construct a scatter plot with this data.
- Do you observe a relationship between both variables?
- Use Excel to fit a linear regression line to the data. What is the fitted regression model?
- What is the slope? What does the slope tell us?Is the slope significant?
- What is the intercept? Is it meaningful?
- What is the value of the regression coefficient,r? What is the value of the coefficient of determination, r^2? What does r^2 tell us?
- Use the model to predict sales and the business spends $950,000 in advertisement. Does the model underestimate or overestimates ales?
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