Exercise 1 For each of the following data set, compute for the rto establish the relationship between the variables given. Identify the independent and dependent variable. Interpret the computed rvalue and state the implications of your findings. 1. The Manager of ABC Products wishes to determine whether the company's advertisement spending has an impact on their sales. The quarterly data for the last two years were as follows. Period Advertisement Expense Sales (in million (in million pesos) pesos) Q1 - 2020 0.275 455.7 02 - 2020 I 0.398 522.3 03 - 2020 1.022 533.8 04 - 2020 1.400 519.7 01 - 2021 1.475 489.8 02 - 2021 2.231 509.3 03 - 2021 2.300 552.7 04 - 2021 I 2.568 495.8 2. An insurance company wants to establish the s rength of relationshio between the number of hours a person works per week and the number of injuries or accidents that person has. The data is as follows. Hours workedlweek 40 48 36 41 32 46 Number of accidents 2 7 0 2 0 5 3. In a Statistics class, the Teacher wants to determine whether absences made by students are related to hisfher final examination score. Data is as follows. No. of Absences 7 6 2 5 9 5 3 Final Exam Score 82 85 91 39 68 83 89 6.4 Simple Linear Regression Analysis The purpose of simple linear regression analysis is to ascertain the relative impact of a predictor on a particular outcome. The technique is different from a correlation analysis, where the purpose is to examine the strength and direction of the relationship between variables. A simple linear regression model contains only one explanatory {or independent) variable, denoted by X- for i: 1.2,... n, and is linear with respect to both the regression coefficients and he response {or dependent) variable. The corresponding response variable is denoted by Y.-_ The simple linear regression model is given by the equation