Consider the following sample data for the relationship between advertising budg

Question

Consider the following sample data for the relationship between advertising budget and sales for Product A: Observation 1 3 5 7 9 10 100,000 110,000 110,000 120,000 130,000 130,000 140,000 150,000 150,000 160,000 676,000 655,000 748,000 796,000 785,000 858,000 891,000 935,000 980,000 sales (S) 603,000 What is the slope of the "least-squares" best-fit regression line? Please round your answer to the nearest hundredth. Note that the correct answer will be evaluated based on the full-precision result you would obtan using Excel.

Explanation / Answer

SOlution:

Install analysis toolpack in excel.

Go to data >data analysis>regression

select Y as sales

X as Advertising

Select data rage .

click ok

YOull get below output:

Regression eq is

sales=-12938.9+6.2*Advertsing

SLOPE OF THE LEAST SQUARES BEST FIR REGRESSION LInE IS

=6.2

SUMMARY OUTPUT Regression Statistics Multiple R 0.99415 R Square 0.988333 Adjusted R Square 0.986875 Standard Error 14283.17 Observations 10 ANOVA df SS MS F Significance F Regression 1 1.38E+11 1.38E+11 677.7152 5.09E-09 Residual 8 1.63E+09 2.04E+08 Total 9 1.4E+11 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept -12938.9 31274.75 -0.41372 0.68995 -85058.6 59180.81 Advertising 6.197222 0.238053 26.03296 5.09E-09 5.648271 6.746173

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