Refer to the advertising–monthly sales data presented in Table 11.1. Consider the straight-line model, E(y) = β₀ + β₁x, where y = sales revenue (thousands of dollars) and x = advertising expenditure (hundreds of dollars).

a. Use the method of least squares to estimate the values of β₀ and β₁.

b. Predict the sales revenue when advertising expenditure is $200 (i.e., when x = 2).

c. Find SSE for the analysis.

d. Give practical interpretations to β₀ and β₁.

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Table 11.1 Advertising-Sales Data Month Advertising Expenditure, x ($100s) 12345 2 12345 Sales Revenue, y ($1,000s) 11224