1. A fast-food chain decided to carry out an experiment to assess the influence of advertising expenditure on sales. Different relative changes in advertising expenditure, compared to the previous year, were made in nine regions of the country, and resulting changes in sales levels were observed. The accompanying table shows the results. Increase in Advertising Expenditure (%) Increase in Sales (%) 2.4 4 7.2 14 10.3 10 9.1 10.2 4.1 6 7.6 1. 3.5 5 a. Estimate by least squares the linear regression of increase in sales on increase in advertising expenditure. b. Find a 95% confidence interval for the slope of the population regression line.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 24PFA
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1. A fast-food chain decided to carry out an experiment to assess the influence of advertising expenditure on sales. Different relative
changes in advertising expenditure, compared to the previous year, were made in nine regions of the country, and resulting changes
in sales levels were observed. The accompanying table shows the results.
Increase in
Advertising
Expenditure (%)
Increase
in Sales
(%)
2.4
4
7.2
14
10.3
10
9.1
10.2
4.1
6
7.6
1.
3.5
5
a. Estimate by least squares the linear regression of increase in sales on increase in advertising expenditure.
b. Find a 95% confidence interval for the slope of the population regression line.
Transcribed Image Text:1. A fast-food chain decided to carry out an experiment to assess the influence of advertising expenditure on sales. Different relative changes in advertising expenditure, compared to the previous year, were made in nine regions of the country, and resulting changes in sales levels were observed. The accompanying table shows the results. Increase in Advertising Expenditure (%) Increase in Sales (%) 2.4 4 7.2 14 10.3 10 9.1 10.2 4.1 6 7.6 1. 3.5 5 a. Estimate by least squares the linear regression of increase in sales on increase in advertising expenditure. b. Find a 95% confidence interval for the slope of the population regression line.
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