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Estimate a regression line using sales as dependent variable and TV advertising spending and radio advertising spending as independent variables. Clearly interpret the estimated coefficients

  1. Estimate a regression line using sales as dependent variable and TV advertising spending and radio advertising spending as independent variables.
  2. Clearly interpret the estimated coefficients of your regression line and discuss the effect of each independent variable on sales in 4 lines.
  3. Use expected spending on TV advertising and on radio advertising in 2017 and 2018 to predict sales in these two years and interpret the results.

Compare predicted sales in 2017 with sales in 2018. Please explain whether this reallocation of advertising spending will have positive effect on sales and why?

Year Sales($) TV AD($) Radio AD($) Sales($) = Sales
2007 4,000,000 6,000 4,000 TV AD($) = TV Advertising Spending
2008 4,400,000 10,000 4,000 Radio AD($)= Radio Advertising Spending
2009 4,600,000 12,000 5,000
2010 4,800,000 14,000 7,000
2011 5,200,000 16,000 9,000
2012 5,800,000 18,000 12,000
2013 6,000,000 22,000 14,000
2014 6,800,000 24,000 20,000
2015 7,400,000 26,000 21,000
2016 8,000,000 32,000 24,000
2017 42,000 20,000
2018 30,000 31,000

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