Question
In: Statistics and Probability
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 the significance of the regression equation.
- Is there a significant relationship between dependent and independent variables at alpha=0.05? Why or why not?
- Interpret the slope of the regression line in the context of the problem.
- Find the coefficient of determination and interpret its meaning in the context of the problem.
- Create a 95% prediction interval for Sales if Advertising dollars = $50 million and interpret its meaning.
Solutions
orchestra answered 2 years agoRelated Solutions
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...
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.
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