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The following data represent a company's yearly sales and its advertising expenditure over a period of 8 years. Sales in Advertising Expenditure Millions of Dollars
The following data represent a company's yearly sales and its advertising expenditure over a period of 8 years. Sales in Advertising Expenditure Millions of Dollars (v) (in $10,000) (x) 15 32 16 33 18 35 17 37 22 44 18 41 19 39 24 42 a. Develop a complete scatter diagram of sales versus advertising. (2 points) b. Explain what the scatter diagram shows regarding the relationship between sales and advertising. (1 point) Compute the estimated regression equation between sales and advertising? (1 C. point) d. If the company's advertising expenditure is $400,000, what are the predicted sales in dollars? (1 point) e. Compute the coefficient of determination. (1 point) f. Fully interpret the meaning of the coefficient of determination in the context of this problem. (1 point) g. Compute the correlation coefficient. (1 point)
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