In: Statistics and Probability
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.
predictor (X) : advertising
response (Y) : sales
i am using minitab to get the regression equation.
steps:-
copy the data in two column of minitab named advertising and
sales
stat
basic statistics
regression
regression
fit regression model
in response select sales and in predictor select advertising
OK.
the needed output be:-
Coefficients
Term | Coef | SE Coef | T-Value | P-Value | VIF |
Constant | 8090.03571 | 12086 | 0.67 | 0.522 | |
advertising | 5.97321 | 0.151 | 39.60 | 0.000 | 1.00 |
Regression Equation
sales | = | 8090.03571 + 5.97321 advertising |
the predicted sales quantity for an advertising budget of $76,000 be:-
= 8090.03571 + (5.97321 * 76000)
=$ 462054
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