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Hi everyone, The Advertising vs. Sales chart shows a positive scatter plot and regression between advertising spending and sales figures. In this particular case the
Hi everyone, The Advertising vs. Sales chart shows a positive scatter plot and regression between advertising spending and sales figures. In this particular case the regression equation is y = 4. 9216x - 25.168. The y symbol represents sales, and the x symbol represents advertising spending. The R squared = 0.6785 value is explained and has a strong relationship between the two variables. In reference to analyzing the Advertising vs Sales chart, businesses can grow based on advertising. Businesses will also have the test power to predict their sales performance. This chart equation shows a coefficient of 4.9216 which indicates every unit increase in advertising spending. Sales is expected to increase 4.9216 units, and -25.168 suggests that even with no advertising spending the business will still be able to generate cash flow. However, the relationship between advertising spending and sales is positive, and advertising spending will increase sales
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