Reliable Furniture is a family business that has been selling to retail customers in the Oakville area for many years. It advertises extensively on radio and TV, emphasizing their its prices and easy credit terms. The owner would like to review the relationship between sales and the amount spent on advertising. Below is information on sales and advertising expense for the last four months. Ad Exp. Sales Rev. Month ($ in 000) ($ in 000) July 2 7 August 1 3 September 3 8 October 4 10 G-9 B continued Questions from G-9 e) Reproduce the excel output manually. f) Interpret the strength of the correlation coefficient. g) Determine the coefficient of determination. Interpret.
Reliable Furniture is a family business that has been selling to retail customers in the Oakville area for many years. It advertises extensively on radio and TV, emphasizing their its prices and easy credit terms. The owner would like to review the relationship between sales and the amount spent on advertising. Below is information on sales and advertising expense for the last four months.
|
Ad Exp. |
Sales Rev. |
|
|
Month |
($ in 000) |
($ in 000) |
|
July |
2 |
7 |
|
August |
1 |
3 |
|
September |
3 |
8 |
|
October |
4 |
10 |
G-9 B continued Questions from G-9
e) Reproduce the excel output manually.
f) Interpret the strength of the
g) Determine the coefficient of determination. Interpret.
h) Test the significance of the Coefficient of Correlation
i) Test the significance of the slope coefficients of the regression equation.
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