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Bl Farmers supplies Cvmru are reviewing their business expenditure to assess the effects of Brexit on their sales. They have produced an estimated regression equation

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Bl Farmers supplies Cvmru are reviewing their business expenditure to assess the effects of Brexit on their sales. They have produced an estimated regression equation relating their sales to the amount of stock they hold, and their advertising expenditure. This equation was based on data obtained from ten depots throughout Wales. Y: 20 +11x1 + 51:; Where x1 = stock costs [in 1000) x1: advertising cost [in E1000] 1; = sales in The data gave an SST = 8000, and SSH = EUUD a} Estimate the sales if Farmers supplies Cymru spend 25,000 on stock, and 15,000 on advertising. b] Explain what b1 and b1 mean in relation to Farmers Supplies Cvmru c] Using the estimated regression equation, calculate R2 d] Calculate the R,,.2 e} Explain how well the model accounts for the variability in the data. f] Calculate the 55E, MSE and M50 g} Using an F test and 0.05 level of signicance, determine whether there is a relationship among the variables. 20 marks

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