The following data represent a company's yearly sales volume and its advertising expenditure over a period of 8 years.
(Y) Sales in Millions of Dollars | (X) Advertising in ($10,000) |
| 14 | 32 |
| 15 | 33 |
| 18 | 35 |
| 17 | 34 |
| 16 | 36 |
| a. | Develop a scatter diagram of sales versus advertising and explain what it shows regarding the relationship between sales and advertising. |
| b. | Use the method of least squares to compute an estimated regression line between sales and advertising. |
| c. | If the company's advertising expenditure is $400,000, what are the predicted sales? Give the answer in dollars. |