Scatter diagram, regression
Scatter diagram, regression
Quick-print firms in a large downtown business area spend most of their advertising dollars on advertisements on bus benches. A research project involves predicting monthly sales based on the annual amount spent on placing ads on bus benches. A sample of quick-print firms revealed these advertising expenses and sales.
Annual Bus Bench Advertising
($ thousands) Monthly Sales
($ thousands)
2 40
4 55
5 75
7 80
3 45
a. Draw a scatter diagram.
b. Determine the coefficient of correlation.
c. What is the coefficient of determination?
d. Compute the regression equation.
e. Estimate the monthly sales of a quick-print firm that spends $4,500 on bus bench advertisements.
f. Summarize your findings.
https://brainmass.com/statistics/regression-analysis/scatter-diagram-regression-estimated-8637
Solution Preview
a) Shown in the excel sheet
b)Coefficient of correlation = R^2 = .913 ( from the graph).
So R = .955
c)Coefficient of Determination = 8.8514 ( Frm the graph)
d)Regression Equation : ...
Solution Summary
The expert draws a scatter diagram. The coefficient of correlation is determined. Monthly sales of a quick-print firm that spends money on bench advertising is estimated.