You are running a donut shop. To promote your shop, you use Facebook and Newspaper ads. You track the impact of your ad spending on donut sales (see file CoffeeShop - Data) 1. Analyze Sales vs. Facebook Advertising Expense trend a. Create scatter plots of Sales vs. Facebook Ads. Expense (i.e. Facebook Advertising Expense is independent variable, Sales is a dependent variable) b. Compute correlation between Sales and Facebook Advertising Expense 2. Analyze Sales vs Newspaper Advertising Expense trend a. Create Scatterplot of Sales vs Newspaper Advertising Expense (i.e. Sales is a dependent variable and Newspaper Advertising Expense is Independent) b. Compute correlation between Sales vs Newspaper Advertising Expense 3. Which correlation is stronger: Sales vs. Facebook Adv. or Sales vs. Newspaper Ads? 4. Compute regression for Sales vs. Facebook Ads Expense (i.e. Facebook Advertising Expense is independent variable, Sales is dependent variable) a. Indicate the value of Intercept and Slope b. Write out regression equation as: Donut Sales = Intercept + Slope x Facebook Ads Spending 5. Using regression from the previous step, compute the predicted Sales if you spend $100 on Facebook ads. 6. Using regression from the previous step, estimate how much you need to spend on Facebook Ads to have Sales of $100,000.

Period Sales ($) Facebook Advertising Expense ($) Newspaper Advertising Expense ($) 2015-January 49,000 98.00 146.14 2015-February 46,180 94.44 81.21 2015-March 47,410 85.00 163.35 2015-April 48,750 96.74 60.94 2015-May 46,260 95.66 78.34 2015-June 42,110 77.35 106.74 2015-July 39,700 81.19 107.98 2015-August 42,400 91.58 60.87 2015-September 41,000 91.97 193.91 2015-October 46,920 85.98 165.08 2015-November 46,790 97.40 141.23 2015-December 47,290 95.81 142.75 2016-January 49,710 105.35 40.39 2016-February 45,420 90.33 113.81 2016-March 43,070 83.66 164.81 2016-April 42,010 84.30 21.91 2016-May 38,140 71.27 25.65 2016-June 33,051 63.00 50.00 2016-July 37,750 72.09 30.27 2016-August 39,860 79.96 145.52 2016-September 37,400 65.35 15.00 2016-October 37,580 71.35 124.86 2016-November 40,770 81.04 38.08 2016-December 42,590 81.08 79.45 2017-January 39,350 85.21 28.11 2017-February 43,560 88.99 137.93 2017-March 39,510 83.00 63.00 2017-April 44,980 89.62 123.67 2017-May 41,700 91.24 77.55 2017-June 39,190 79.08 151.83 2017-July 42,240 87.05 57.45 2017-August 40,250 86.49 165.19 2017-September 44,790 91.39 42.03 2017-October 43,290 79.96 113.54 2017-November 60,300 110.00 75.00 2017-December 43,130 82.28 136.58