a. Compute the least squares regression line. b. On average, for each additional thousand dollars spent on advertising, how does revenue change? Explain. c. Estimate the revenue if $2,500 is spent on advertising next year.

Elementary Linear Algebra (MindTap Course List)
8th Edition
ISBN:9781305658004
Author:Ron Larson
Publisher:Ron Larson
Chapter2: Matrices
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8. The advertising expenditure x and sales y in thousands of dollars for a small retail
business in its first eight years in operation are shown in the table.
X
2.0 2.2
2.4 2.6
1.4 1.6 1.6 2.0
180 184 190 220
y
186
215 205 240
a.
Compute the least squares regression line.
b.
On average, for each additional thousand dollars spent on advertising, how does
revenue change? Explain.
c. Estimate the revenue if $2,500 is spent on advertising next year.
Transcribed Image Text:8. The advertising expenditure x and sales y in thousands of dollars for a small retail business in its first eight years in operation are shown in the table. X 2.0 2.2 2.4 2.6 1.4 1.6 1.6 2.0 180 184 190 220 y 186 215 205 240 a. Compute the least squares regression line. b. On average, for each additional thousand dollars spent on advertising, how does revenue change? Explain. c. Estimate the revenue if $2,500 is spent on advertising next year.
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