Question

In: Math

The Perotti Pharma Company is investigating the relationship between advertising expenditures and the sales of some...

The Perotti Pharma Company is investigating the relationship between advertising expenditures and the sales of some over-the-counter (OTC) drugs.

The following data represents a sample of 10 common OTC drugs. Note that AD = Advertising dollars in millions and S = Sales in millions $.

AD S
22 64
25 74
29 82
35 90
38 100
42 120
46 120
52 130
65 150
88 230

1. What is the equation of the regression line?

2. Interpret the slope in the context of the problem.

3. Find the coefficient of determination.

4. Interpret the meaning of R2 in the context of the problem.

5. State the hypotheses to test for the significance of the regression equation.

6. Is there a significant relationship between dependent and independent variables at alpha=0.05? Why?

7. Create a 95% confidence interval for Sales if Advertising dollars = $50 million and interpret its meaning.

8. Paste the table with the results of regression analysis.

Solutions

Expert Solution

----------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------

(8)

The table with the results of regression analysis is given below:

milcah answered 4 months ago
Next > < Previous

Related Solutions

The PerottiPharma Company is investigating the relationship between advertising expenditures and the sales of some over-the-counter...
The PerottiPharma Company is investigating the relationship between advertising expenditures and the sales of some over-the-counter (OTC) drugs. The following data represents a sample of 10 common OTC drugs. Note that AD = Advertising dollars in millions and S = Sales in millions $. AD S 22 64 25 74 29 82 35 90 38 98 42 118 46 125 52 130 65 158 88 230 What is the equation of the regression line? State the hypotheses to test for...
Advertising expenditures and sales for the last 5 quarters have been as follows: Quarter Advertising expenditures...
Advertising expenditures and sales for the last 5 quarters have been as follows: Quarter Advertising expenditures Sales 1 1 4 2 1 5 3 2 6 4 2 7 5 4 8 In quarter 3, a new product was introduced that would influence sales in quarter 3. 4 and 5. The following model is established: y=β1x1+β2x2+ ε where y=sales, x1=advertising expenditures, x2 is a variable that is 1 when the new product is available and 0 otherwise, and ε is...
A sales manager for an advertising agency believes there is a relationship between the number of...
A sales manager for an advertising agency believes there is a relationship between the number of contacts and the amount of the sales. To verify this belief, the following data was collected: For each sales contact a particular person makes, the amount of sales is expected to: Select one: a. Decrease by 2.195 thousand units b. Increase by 2.195 thousand units c. Decrease by 12.201 thousand units d. Increase by 12.201 thousand units
A sales manager is interested in determining the relationship between the amount spent on advertising and...
A sales manager is interested in determining the relationship between the amount spent on advertising and total sales. the manger collects data for the past  months and runs a regression of sales on advertising expenditures. The results wıth some missing values are presented below. Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.492 0.242 0.208 40.975 ANOVA df SS MS F Significance Regression Residual Total 1 Coefficients Standard Error t Stat P-value Constant Advertising To test the...
Consider the following sample data for the relationship between advertising budget and sales for Product A:...
Consider the following sample data for the relationship between advertising budget and sales for Product A: Observation 1 2 3 4 5 6 7 8 9 10 Advertising ($) 50,000 60,000 60,000 70,000 70,000 80,000 90,000 90,000 100,000 110,000 Sales ($) 299,001 371,000 364,000 430,000 440,000 485,000 535,000 546,000 595,000 675,000 What is the predicted sales quantity for an advertising budget of $76,000? Please round your answer to the nearest integer.
Consider the following sample data for the relationship between advertising budget and sales for Product A:...
Consider the following sample data for the relationship between advertising budget and sales for Product A: Observation 1 2 3 4 5 6 7 8 9 10 Advertising ($) 50,000 60,000 60,000 70,000 70,000 80,000 90,000 90,000 100,000 110,000 Sales ($) 299,001 371,000 364,000 430,000 440,000 485,000 535,000 546,000 595,000 675,000 What is the correlation value for the relationship between advertising and sales? Please round your answer to the nearest hundredth.
Consider the following sample data for the relationship between advertising budget and sales for Product A:...
Consider the following sample data for the relationship between advertising budget and sales for Product A: Observation 1 2 3 4 5 6 7 8 9 10 Advertising ($) 50,000 60,000 60,000 70,000 70,000 80,000 90,000 90,000 100,000 110,000 Sales ($) 299,001 371,000 364,000 430,000 440,000 485,000 535,000 546,000 595,000 675,000 What is the predicted sales quantity for an advertising budget of $76,000? Please round your answer to the nearest integer. Note that the correct answer will be evaluated based...
Consider the following sample data for the relationship between advertising budget and sales for Product A:...
Consider the following sample data for the relationship between advertising budget and sales for Product A: Observation 1 2 3 4 5 6 7 8 9 10 Advertising ($) 100,000 110,000 110,000 120,000 130,000 130,000 140,000 150,000 150,000 160,000 Sales ($) 603,000 676,000 655,000 748,000 796,000 785,000 858,000 891,000 935,000 980,000 What is the slope of the "least-squares" best-fit regression line? Please round your answer to the nearest hundredth.
Consider the following sample data for the relationship between advertising budget and sales for Product A:...
Consider the following sample data for the relationship between advertising budget and sales for Product A: Observation 1 2 3 4 5 6 7 8 9 10 Advertising ($) 50,000 60,000 60,000 70,000 70,000 80,000 90,000 90,000 100,000 110,000 Sales ($) 299,001 371,000 364,000 430,000 440,000 485,000 535,000 546,000 595,000 675,000 What is the correlation value for the relationship between advertising and sales? Please round your answer to the nearest hundredth.
Consider the following sample data for the relationship between advertising budget and sales for Product A:...
Consider the following sample data for the relationship between advertising budget and sales for Product A: Observation 1 2 3 4 5 6 7 8 9 10 Advertising ($) 80,000 80,000 90,000 100,000 100,000 110,000 120,000 120,000 130,000 140,000 Sales ($) 499,000 477,000 546,000 614,000 623,000 653,000 747,000 714,000 785,000 858,000 What is the slope of the "least-squares" best-fit regression line? Please round your answer to the nearest hundredth.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT