QUESTION 10 Mr. Kuku, a UM Flint graduate, working for an online retailer discov

Question

QUESTION 10 Mr. Kuku, a UM Flint graduate, working for an online retailer discovers that online sales of a certain product are related to the amount of dollars spent on Facebook ads. Kuku quickly builds a regression model to predict sales given the amount of money spent on Facebook ads. The data and the regression output from Excel are shown below. ales (# of Units) Facebook Ad So 210 125 134 95 182 98 224 Regression output from Excel: Regression Statistics ultiple R R Square 0.91 usted R Square ard Error ations 165 t Sta P-valu Coefficients Standard 285 189 0.21 ntercept Facebook Ad 0.1 What is the expected sales if the company plans to spend 1500$ on Facebook ads? Please round your nswer to 2 decimal places. Enter only a number in the space provided.

Explanation / Answer

From the regression statistics, regression equation is

Sales (# of units) = 285.38 + 1.40 * Facebook Ad Spending

For $ 1500 Facebook Ad spending, Sales (# of units) = 285.38 + 1.40 * 1500 = 2385.38

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