Reference no: EM13579260

PART 1:

Shown below are the sales revenue and advertising cost data for seven companies published by International Advertising Age.

COMPANY       ADVERTISING ($ MILLIONS)       SALES ($ BILLIONS)
Wal-Mart                   1,073                                       351.1
Ford Motor                2,577                                       160.1
Airbus                       4,898                                        68.2
Reuters Group          2,822                                         93.2
ATT                            3,345                                         63.1
Fujifilm                       829                                            91.7
Toyota                      3,296                                          207.3

Use the above data to develop a regression line to predict the amount of advertising by sales. Compute the 'r2' from the regression output. Discuss, in at least 150 words, regression models and identify their relative strengths and weaknesses.

Part 2:

CORN     SOYBEANS      WHEAT
4152         1127             1352
6639         1798             2381
4175         1636             2420
7672         1861             2595
8876         2099             2424
8226         1940             2091
7131         1938             2108
4929         1549             1812
7525         1924             2037
7933         1922             2739
?               1181             2250

The International Agricultural Producers publishes annual data on various selected farm products. Shown above are the unit productions figures (in millions of bushels) for three farm products for 10 years. Use this data and multiple regression analysis to predict corn production by the production of soybeans and wheat.

Using 150 words or more comment on the results of your data analysis.