LINEAR REGRESSION

A company selling a known bath soap wants to find out how much will their sales be if they will spend 3 million pesos in a month advertising their product. The table below shows their past sales (in million pesos) corresponding to the advertisement expenses (in million pesos).

Where:

Slope, b = 5.67

Intercept, a = 13.80

Months JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Adv Exp (X) 1.20 1.40 0.50 2.10 2.00 1.60 1.00 0.60 0.80 1.80 1.90 1.50 Sales (Y) 21.20 21.80 17.00 25.50 26.20 22.50 19.50 17.30 17.50 24.00 23.80 22.30