An advertising firm wishes to demonstrate to its clients the effectiveness of the advertising campaigns it has conducted. The following bivariate data on twelverecent campaigns, including the cost of each campaign (in millions of dollars) and the resulting percentage increase in sales following the campaign, werepresented by the firm. Based on these data, we would compute the least-squares regression line to be y = 6.20+ 0.17x, with x representing campaign cost andy representing the resulting percentage increase in sales. (This line is shown below, along with a scatter plot of the data.)Campaign Increase incost, x(In millions ofdollars)sales, y(percent)7.2+2.346.701.256.3471.996.516.81.706.2866+3.706.746.41.576.562.126.746.23.246.5362.896.583.016.913.446.86Campaign cost, x(in millions of dollars)4.126.92Send data to calculatorSend data to ExcelBased on the sample data and the regression line, complete the following.(a) For these data, values for campaign cost that are greater than the mean of the values for campaign cost tend to be pairedwith values for percentage increase in sales that are (Choose one) v the mean of the values for percentage increase insales.(b) According to the regression equation, for an increase of one million dollars in advertising campaign cost, there is acorresponding (Choose one)| of 0.17 percent in sales.(c) What was the observed percentage increase in sales when the advertising campaign cost was 2.12 million dollars?(d) From the regression equation, what is the predicted percentage increase in sales when the advertising campaign cost is2.12 million dollars? (Round your answer to at least two decimal places.)Increase in sales, y

The independent variable is Campaign cost. The dependent variable is Increase in sales. This is…

An advertising firm wishes to demonstrate to its clients the effectiveness of the advertising campaigns it has conducted. The following bivariate data on twelve recent campaigns, including the cost of each campaign (in millions of dollars) and the resulting percentage increase in sales following the campaign, were presented by the firm. Based on these data, we would compute the least-squares regression line to be y = 6.20 + 0.17x, with x representing campaign cost and y representing the resulting percentage increase in sales. (This line is shown below, along with a scatter plot of the data.) Campalgn Increase in cost, x sales, y (percent) (in millions of dollars) 2.34 7.2- 6.70 1.25 6.34 1.99 6.51 6. 1.70 6.28 6.6- 3.70 6.74 1.57 6.56 2.12 6.74 6.2 3.24 6.53 2.89 6.58 3.01 6.91 3.44 6.86 Campaign cost, x (in millions of dollars) 4.12 6.92 Send data to calculator v Send data to Excel Based on the sample data and the regression line, complete the following. (a) For these data, values for campaign cost that are greater than the mean of the values for campaign cost tend to be paired with values for percentage increase in sales that are (Choose one) | the mean of the values for percentage increase in ? sales. (b) According to the regression equation, for an increase of one milion dollars in advertising campaign cost, there is a corresponding (Choose one) ▼ of 0.17 percent in sales. (c) What was the observed percentage increase in sales when the advertising campaign cost was 2.12 million dollars? |(d) From the regression equation, what is the predicted percentage increase in sales when the advertising campaign cost is 2.12 million dollars? (Round your answer to at least two decimal places.) Increase in sales, y

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter7: Distance And Approximation

Section7.3: Least Squares Approximation

Problem 31EQ