See the attached file for proper formatting. Please solve the exercise below in Excel and show your work, along with the formulas.
Scenario: A local tire dealer wants to predict the number of tires sold each month. He believes that the number of tires sold is a linear function of the amount of money invested in advertising. He randomly selects 6 months of data consisting of tire sales (in thousands of tires) and advertising expenditures (in thousands of dollars). Based on the data set with 6 observations, the simple linear regression model yielded the following results. (Please view attachment for rest of question).
Find the Intercept and slope and write the regression equation. Also predict the amount of tires (in thousand tires) sold when money invested in advertising is 5 thousand dollars. Calculate the correlation coefficient, coefficient of determination. Check whether there is a relation between correlation coefficient and coefficient of determination. Calculate SSE and MSE and standard error of the slope coefficient.
This solution is comprised of a step by step method for the calculation of a regression analysis. Formulas for the calculations and an interpretation of the results are also included. In order to view the solution, an Excel file attachment needs to be opened.