The advertising and subscription revenues of Pandora are shown in Table 24 for various years. Let y
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Let y be the annual advertising revenue (in millions of dollars) at x years since 2005.
a. Construct by hand a scatterplot that describes the association between x and y.
b. Graph the model = 2(2.192)x by hand on the scatterplot.
c. Describe the four characteristics of the association.
d. What is the y-intercept? What does it mean in this situation? Do you have much faith in your estimate?
e. The annual subscription revenue can be modeled fairly well by the equation = 0.24(2.19)x, where s is the annual subscription revenue (in millions of dollars) at x years since 2005. Compare the bases of the subscription and advertising models. What does your comparison mean in this situation?
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