(b) The owner of a hypermarket attempts to analyse the relationship between advertising expenditures and sales. He recorded the monthly advertising budget (RM '000) and the monthly sales (RM millions) for a sample of 12 months. The following summary statistics have been generated. SUMMARY OUTPUT Regression Statistics Correlation Coefficient, r 0.779 R Square 0.607 Observations 12 Analysis of Variance Source df SS MS F p-value Regression 1 27.964 27.964 15.471 0.003 Residual 10 18.139 1.814 Total 11 46.103 Coefficients Standard Error t Stat p-value Intercept 9.100 0.852 10.687 0.000 Slope 0.058 0.015 3.926 0.003(ii) Interpret correlation coefficient, R and R square given in the summary output. [6 marks] (iii) From the t statistics and F statistic in the summary tables above, comment on the appropriateness of the least square regression model in (i). [9 marks] (iv) Give two assumptions for the regression model in (i) to be valid. [4 marks]