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The management team for Beaudraux Microbrewery is trying to predict how beer sales are affected by its advertising expenditures. The management wants to determine, by using the following sales and advertising data, if the model is a good fit, i.e., if it has a good R2 indicator. Determine if the linear regression model has an R2 value greater than 0.5 and report the value of R2.
Advertising Dollars ($ millions)
2020 Sales ($ millions)
January
1.8
104
February
1.2
68
March
0.4
39
April
0.5
43
May
2.5
134
June
127
July
1.5
87
August
77
September
1.6
102
October
1
65
November
101
December
0.7
46
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