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Regression analysis of sale and advertisement.

A manager wishes to find out whether there is a relationship between the number of radio ads aired per week and the amount of sales of the product.
# of Ads 2 5 8 8 10 12
Sales Y 2 4 7 6 9 10

Develop the estimated regression equation.
Predict the amount of sales for 7 Ads per week
Predict the amount of sales for 15 Ads per week

Compute the coefficient of determination of (r2) and comment of the goodness of fit.
What is the value of the sample correlation coefficient?


Solution Summary

The solution gives regression model for the variables sales and advertisement cost. SSE, SSR, SST, correlation coefficient, scatter diagram are given with interpretations.