Question
The following table shows the amount spent on advertising and the corresponding sales of the product from 10 companies Company Sales (000) Advertising cost (000)
The following table shows the amount spent on advertising and the corresponding sales of the product from 10 companies
Company | Sales (000) | Advertising cost (000) |
A | 25 | 8 |
B | 35 | 12 |
C | 29 | 11 |
D | 24 | 5 |
E | 38 | 14 |
F | 12 | 3 |
G | 18 | 6 |
H | 27 | 8 |
I | 17 | 4 |
J | 30 | 9 |
(a) Plot a scatter diagram showing the relationship between advertising cost and sales of the product.
(b) Identify the dependent and independent variables
(c) Calculate the equation of the regression line of sales on advertising costs.
(d) Use the regression line to forecast sales if advertising costs were 1000.
(e) Determine coefficient of determination and interpret
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