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:

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 obtain using Excel.

Answer

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

Explanation / Answer

Here x = independent variable = Advertising

y = Dependent variable = Sales

We can solve this question using excel.

First, enter data into excel.

Click on Data -------> Data Analysis --------> Regression ------->

Input

Input Y Range : select y values

Input X Range :select values of x.

Output Range: select an empty cell

---------> ok

We get

So the least squares line is y = 8090.036 + 5.973206*x

So the slope is 5.97 ( After rounding nearest hundredth)

x y 50000 299001 60000 371000 60000 364000 70000 430000 70000 440000 80000 485000 90000 535000 90000 546000 100000 595000 110000 675000

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.