The following set of data shows how the advertising budgetaffects its sales (both in millions of dollars):
Advertising. Sales
| 12.5 | 148 |
| 3.7 | 55 |
| 21.6 | 338 |
| 60 | 994 |
| 37.6 | 541 |
| 6.1 | 89 |
| 16.8 | 126 |
| 41.2 | 379 |
Develop the equation of the simple regression line to predictsales from advertising expenditures using these data. You will needto:
-Calculate the intercept and slope of the linear regressionformula that relates the advertising to sales.
-Calculate the value of R-squared.
-Predict the sales, in millions of dollars, if the advertisingbudget is 50, 70, 90 million dollars.
-How strong is the correlation? What is your confidence in thenumbers you calculated?
