1. The following chart is data over an 8 month period that shows how much a company spent in advertising and the sales revenue for that month MONTH ADVERTISING $ SALES $ March 900 56000 April 2700 89200 May 3150 98500 June 1300 54000 July 3400 97000 Aug 1500 56000 Sept 2300 93000 Oct 2250 79000 a)What is the correlation coefficient? (round to 2 decimals) describe how you utilized excel to arrive at this number (recommended) or show the formula you utilized to arrive at this answer b) Is it a positive or negative correlation? c) Would you say it is a strong correlation, weak correlation or no correlation? What is the indicator that lead you to that conclusion?
1. The following chart is data over an 8 month period that shows how much a company spent in advertising and the sales revenue for that month MONTH ADVERTISING $ SALES $ March 900 56000 April 2700 89200 May 3150 98500 June 1300 54000 July 3400 97000 Aug 1500 56000 Sept 2300 93000 Oct 2250 79000 a)What is the correlation coefficient? (round to 2 decimals) describe how you utilized excel to arrive at this number (recommended) or show the formula you utilized to arrive at this answer b) Is it a positive or negative correlation? c) Would you say it is a strong correlation, weak correlation or no correlation? What is the indicator that lead you to that conclusion?
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 2AGP
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Question
1. The following chart is data over an 8 month period that shows how much a company spent in advertising and the sales revenue for that month
MONTH |
ADVERTISING $ |
SALES $ |
March |
900 |
56000 |
April |
2700 |
89200 |
May |
3150 |
98500 |
June |
1300 |
54000 |
July |
3400 |
97000 |
Aug |
1500 |
56000 |
Sept |
2300 |
93000 |
Oct |
2250 |
79000 |
a)What is the
b) Is it a positive or
c) Would you say it is a strong correlation, weak correlation or no correlation? What is the indicator that lead you to that conclusion?
d) What is the linear equation (y = mx + b form) that best approximates the relationship between advertising dollars spent(x) and sales revenue(y) based on the above 8 months of data? (round to 2 decimals for the slope and the y intercept) describe how you utilized excel to arrive at this equation (recommended) or show the formula you utilized to arrive at your equation
e) What sales revenue would the company expect for the following advertising spending? Round to nearest centshow calculation
a) 3000
b) 2100
c) 1300
f) If you were in charge of the advertising department how much would you spend on each of the next 4 months on advertising and how and why did you arrive at your decision?
Nov
Jan
Feb
March
Please give a short explanation as to how and why you came up with your advertising spending for the above 4 months.
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Follow-up Question
If you were in charge of the advertising department how much would you spend on each of the next 4 months on advertising?
Solution
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Follow-up Question
- What is the linear equation (y = mx + b form) that best approximates the relationship between advertising dollars spent(x) and sales revenue(y) based on the above 8 months of data? (round to 2 decimals for the slope and the y intercept)
Solution
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