Use MINITAB to answer question.

An investment analyst is interested in developing an equation to forecast the earnings per share of a company. He collects the following data for five companies.

(a) Formulate a suitable regression model to explain EPS.

(b) Are there any variables you may want to omit from the regression? If so, why?

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Company 123 &in 4 5 EPS 1.00 2.00 1.50 3.00 3.25 Sales in $ 100 175 89 225 300 Advertising expense in $ 80 120 72 175 240 Cost in $ 50 28 30 20 25