Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow.

Advertising ExpendituresRevenue

1 20

2 32

4 44

6 40

10 52

14 53

20 54

a.Letxequal advertising expenditures andequal revenue. Use the method of least squares to develop a straight line approximation of the relationship between the two variables (to2decimals).

=____+____x

b.Test whether revenue and advertising expenditures are related at alevel of significance.

Compute the following (to2decimals).

SSE

SST

SSR

MSR

MSE

Compute theFtest statistic (to2decimals).