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Reid Sanders Case Study: Linear Regression Analysis

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Chapter 8 Problem 25 Reid Sanders. The following data were collected on the study of the relationship between a company's retail sales and advertising dollars: Retail Sales ($) Advertising ($) 29,789 16,893 35,434 18,398 38,732 20,376 43,585 22,982 46,821 25,732 49,283 27,281 52,271 32,182 55,289 35,298 57,298 36,281 58,293 38,178

(a) Obtain a linear regression line for the data.
(b) Compute a correlation coefficient and determine the strength of the linear relationship.
(c) Using the linear regression equation, develop a forecast of retail sales for advertising dollars of $40,000.

Please provide the solution in Excel.

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Solution Summary

This solution helps answer questions regarding linear regression analysis of a case study involving Reid Sanders. It provides a linear regression line, computes a correlation coefficient, determines the strength of the linear relationship, and develops a forecast of retail sales. The solution is provided in Excel.

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(Please see attached Excel file for calculations in Excel)

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