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Advertising expenditure and sales figures for a company during the previous 15 weeks were recorded below: Week Ads expense ($'000s) Sales ($'000s) 1 3 50
Advertising expenditure and sales figures for a company during the previous 15 weeks were recorded below:
Week | Ads expense ($'000s) | Sales ($'000s) |
1 | 3 | 50 |
2 | 5 | 250 |
3 | 7 | 700 |
4 | 6 | 450 |
5 | 6.5 | 600 |
6 | 8 | 1000 |
7 | 3.5 | 75 |
8 | 4 | 150 |
9 | 4.5 | 200 |
10 | 6.5 | 550 |
11 | 7 | 750 |
12 | 7.5 | 800 |
13 | 7.5 | 900 |
14 | 8.5 | 1100 |
15 | 7 | 600 |
- Build a regression model table (Excel Analysis tool pack)
- Interpret the R-square. Do you see a strong linear relationship between the independent and dependent variables?
- Manually calculate SSE of your model. (Note: you can cross-check your SSE to see if you calculate it correctly).
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