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 ($) | 100,000 | 110,000 | 110,000 | 120,000 | 130,000 | 130,000 | 140,000 | 150,000 | 150,000 | 160,000 |
Sales ($) | 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.
the slope of the "least-squares" best-fit regression line = 6.20
[ explanation:-
predictor (x): advertising
response (y) : sales.
i am using excel to solve the problem.
steps:-
copy the data in two column of excel named advertising(x) and sales (y) data data analysis regression in input Y range select the range of sales (y) column and in input X range select the range of advertising(x) including the labels tick labels in output options select output range and select any blank cell in your excel sheet ok.
your output be:-
SUMMARY OUTPUT | ||||||||
Regression Statistics | ||||||||
Multiple R | 0.99415 | |||||||
R Square | 0.988333 | |||||||
Adjusted R Square | 0.986875 | |||||||
Standard Error | 14283.17 | |||||||
Observations | 10 | |||||||
ANOVA | ||||||||
df | SS | MS | F | Significance F | ||||
Regression | 1 | 1.38E+11 | 1.38E+11 | 677.7152 | 5.09E-09 | |||
Residual | 8 | 1.63E+09 | 2.04E+08 | |||||
Total | 9 | 1.4E+11 | ||||||
Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | |
Intercept | -12938.9 | 31274.75 | -0.41372 | 0.68995 | -85058.6 | 59180.81 | -85058.6 | 59180.81 |
advertising(x) | 6.197222 | 0.238053 | 26.03296 | 5.09E-09 | 5.648271 | 6.746173 | 5.648271 | 6.746173 |
from the output it is clear that slope of the regression line = 6.197222 6.20
]
*** if you have any doubt regarding the problem please write it in the comment box...if you are satisfied please give me a LIKE if possible...