Question 1

Assume you have noted the following prices for paperback books and the number of pages that each book contains.

Develop a least-squares estimated regression line.

Book Pages (x variable) Price (y variable)

A 500 $7.00

B 610 $8.50

C 550 $7.30

D 650 $9.00

E 530 $7.25

F 600 $8.00

G 477 $6.25

1. I need a scatter diagram which shows the trendline and provides the coefficient of determination.
2. Define coefficient of determination.Define Pearson's Product Moment Correlation Coefficient. What are these values in this example, and what does each one tell you?Interpret both.
3. Conduct a full hypothesis test to determine if x and y are related. Use = 0.05.

Question 2

The following data represent a company's yearly sales volume and its advertising expenditure over a period of 8 years.

Advertising (x) Sales (y)

400,000 6,000,000

500,000 7,200,000

500,000 8,000,000

660,000 7,500,000

790,000 8,900.000

540,000 8,100,000

420,000 5,900.000

380,000 4,000,000

1. Develop a scatter diagram of sales versus advertising.Include the trendline equation and the coefficient of determination.
2. If the company's advertising expenditure is $315,000, what are the predicted sales?
3. If the company wanted $9,500,000 in sales, what should the advertising budget be?