Problem 3 Restaurant Advertising and Revenue. Data on advertising expenditures and revenue (in thousands of dollars)...

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Problem 3 Restaurant Advertising and Revenue. Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow. Advertising Expenditures Revenue 1 19 2 32 4 44 6 40 10 52 14 53 54 20 a. Let x equal advertising expenditures and y equal revenue. Use the method of least squares to develop a straight-line approximation of the relationship between the two variables. b. Test whether revenue and advertising expenditures are related at a .05 level of significance. c. Prepare a residual plot of y- versus . Use the result from part (a) to obtain the values of . d. What conclusions can you draw from residual analysis? Should this model be used, or should we look for a better one? When answering could you please provide the formula's in excel, Thank you so much! Problem 3 Restaurant Advertising and Revenue. Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow. Advertising Expenditures Revenue 1 19 2 32 4 44 6 40 10 52 14 53 54 20 a. Let x equal advertising expenditures and y equal revenue. Use the method of least squares to develop a straight-line approximation of the relationship between the two variables. b. Test whether revenue and advertising expenditures are related at a .05 level of significance. c. Prepare a residual plot of y- versus . Use the result from part (a) to obtain the values of . d. What conclusions can you draw from residual analysis? Should this model be used, or should we look for a better one? When answering could you please provide the formula's in excel, Thank you so much!