A corporation owns several companies. The strategic planner for
the corporation believes amount spent on advertising...
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A corporation owns several companies. The strategic planner forthe corporation believes amount spent on advertising can to someextent be a predictor of total sales. As an aid in long termplanning, she gathers the following sales and advertisinginformation from several of the companies in millions for the year2019.
Advertising
12.5
3.7
21.6
60.0
37.6
6.1
16.8
41.2
Sales
148
55
338
994
541
89
126
379
Develop the equation of the simple regression line to predictsales on advertising expenditures using thesedata.                                                                                                             [10 Marks]
Find out the sales that are likely to be attained whenadvertising expenditure is 25
million.                                                                                                          [2 Marks]
Compute the coefficient of correlation and coefficient ofdetermination and interpret their values. [4 Marks]
Test the hypothesis that the population correlation coefficientis zero at 5% level of significance. [4 Marks]
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Solution1 simple regression line isY
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