Business Statistics Assignment

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Question 1 a) Independent variable is advertising. Dependent variable is sales. The scatter plot shows that there is a positive relationship between amount spent on advertising and sales b) Sales= -4.9913+0.1227(advertising) c) For every additional dollar spent on advertising we can expect sales to increase by an average of 0.1227 dollars d) 0.87092 87% of variance in sales is predictable by amount spent on advertising. e) No. The histogram of residuals is evenly distributed around zero. Most error are at or close to zero f) Yes. Points in the residual plot is lying on a curve around zero. A pattern is seen. (Cheng-Few, John, Alice, 2013, p.800). This indicates that the model is not satisfactory. g)…show more content…
so B=90 Same procedure was followed to calculate D * Unknown values in the sales column was calculated by adding the residual (column F) and predicted value (column E) Examples: A= 0.09734949+7.890265051 =8 * Unknown values in the predicted column was calculated using the regression equation. To calculate the unknown E value in cell E7 the following formula was entered into the cell =-4.9913+(0.1227*C7) This formula was copied to all the cells of the column to find unknown values E, G and I. * Unknown values in the residual column was calculated by subtracting predicted sales value (column E) from the actual sales value (column D) For example, to calculate the unknown value F the following formula was entered into the cell =D10-E10 References Cheng-Few Lee, John C. Lee, Alice C. Lee. (2013). Statistics for Business and Financial Economics. Retrieved from
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