Reference no: EM132737117
Respond to the following in a minimum of 175 words: on 3 different documents
Models help us describe and summarize relationships between variables. Understanding how process variables relate to each other helps businesses predict and improve performance. For example, a marketing manager might be interested in modeling the relationship between advertisement expenditures and sales revenues.
Consider the dataset below and respond to the questions that follow:
Advertisement (000) Sales (000)
1068 4489
1026 5611
767 3290
885 4113
1156 4883
1146 5425
892 4414
938 5506
769 3346
677 3673
1184 6542
1009 5088
Problem 1: Construct a scatter plot with this data.
Problem 2: Do you observe a relationship between both variables?
Problem 3: What is the slope? What does the slope tell us?Is the slope significant?
Problem 4: What is the intercept? Is it meaningful?
Problem 5: Use the model to predict sales and the business spends $950,000 in advertisement. Does the model underestimate or overestimates ales?