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In: Statistics and Probability

A corporation owns several companies. The strategic planner for the corporation believes dollars spent on advertising...

A corporation owns several companies. The strategic planner for the corporation believes dollars spent on advertising can to some extent be a predictor of total sales dollars. As an aid in long-term planning, she gathers the following sales and advertising information from several of the companies for 2009 ($ millions).

Advertising:

12.5

3.7

21.6

60

37.6

6.1

16.8

41.2

Sales:

148

55

338

994

541

89

126

379
  1. Develop the equation of the simple regression line to predict sales from advertising expenditures using these dat
  2. Produce the excel output table and separately show the calculations including formula used.
  3. Determine Se, R-square and Multiple R for the data. What is its interpretation.
  4. Test the slope of the regression line determines in b. Use α=0.10
  5. Construct a 98% confidence interval for average value of y and prediction interval for a single value of y using x=$20M. which one is wider? Why?

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orchestra answered 2 years ago
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