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Ashland MultiComm Services needs to accurately forecast monthly total of new subscriptions. An analyst is looking for factors that might help in predicting new subscriptions.

Ashland MultiComm Services needs to accurately forecast monthly total of new subscriptions. An analyst is looking for factors that might help in predicting new subscriptions. She collected data for the number of new subscriptions and hours spent on telemarketing for each month for the past two years. Data is listed below (24 data counts in total)

a. Analyze the data and develop a simple linear regression model to predict the number of new subscriptions for a month, based on the number of hours spent on telemarketing for new subscriptions.

b. If you expect to spend 1,200 hours on telemarketing per month, estimate the number of new subscriptions for the month. Indicate the assumptions on which this prediction is based. Are these assumptions valid? Explain.

c. What would be the danger of predicting the number of new subscriptions for a month in which 2,000 hours were spend on telemarketing?

Hours New Subscriptions
1224 5357
1458 6177
1006 4795
1395 5692
1131 4312
921 3421
704 2624
1154 4087
1168 4934
803 2546
830 3591
981 4271
1435 5836
1349 5201
965 3775
985 3592
1117 4566
840 2974
1412 5673
940 3554
1090 4399
1498 6143
1240 4827
1055 5418

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