BCO127 Applied Management Statistics
Determine the relationship between advertising and sales. (35 points)
a. Plot a Scatter plot of the data (sales vs advertising). Interpret the plot?
b. Calculate the linear regression equation that best fits the data and explains the independent and dependent variables. (TIP: dependent variable =
Sales; independent variables = Advertising & Number of Employees).
c. Calculate the correlation coefficient and interpret the result.
d. Estimate the sales for the 21st year of business if advertising is 90 and the number of employees as 50.
e. Estimate the sales for the 22nd year of business if advertising is 100 and the number of employees as 55.
f. Interpret the Goodness of Fit measure for the regression model provided in (a.).
DETAILED ASSIGNMENT
