Question

A corporation owns several companies. The strategic planner for the corporation believes dollars spent on advertising can to some extent be a predictor of total sales dollars. As an aid in long-term planning, she gathers the following sales and advertising information from several of the companies for 2011 ($ millions). Determine the SSE and the se by using y= -46.29 + 15.24 x. Think about the variables being analyzed by regression in this problem and comment on the value of se. Advertising (x) 12.5 3.7 21.6 60.0 37.6 6.1 16.8 41.2 Sales (y) 148 55 338 994 541 89 126 379 *(Round your answer to o decimal place.) **(Round your answer to 1 decimal places.) SSE = --- -46.3 Se = .. 0.948 J out of 8 89.81 J%) of the sales estimates are within the value of se.

Answer 1

Given that equation of simple regression line y = a + bx b is slope of the regression line b = cos (x y)/var (x) cos (x, y) = sigma xi yi/x - sigma xi/x sigma yi/x = 13451.23 23 - 6070.08 = 7380.15 v(x) = sigma xi^2/x - (sigma xi/x)^2 = 958.39 - 333 79 = 624.6 b = 7380.15/624.6 = 11.82 a is intercept of regression line \r\n a = y - bx = 333.75 - 11.82 times 18.19 = 333.75 - 215 .0 a = 118.74 hence, equation of simple Regression line y = a + bx = 118.74 + 11.82 x