The owner of a retail store randomly selected the following weekly data on profits and advertising cost.
a.Write down the appropriate linear relationship between advertising cost and profits.Which is the dependent variable? Which is the independent variable?
b.Calculate the least squares estimated regression line.
c.Predict the profits for a week when $200 is spent on advertising.
d.At 95% confidence,test to determine if the relationship between advertising costs and profits is statistically significant.
e.Calculate the coefficient of determination.
Definitions:
Financial Statements
Formal records of the financial activities and position of a business, individual, or other entity.
Double-Declining-Balance Method
A method of accelerated depreciation that doubles the rate at which an asset's book value depreciates.
Salvage Value
The projected amount an asset is expected to yield when it is sold after its period of usability has ended.
Book Value
The value of an asset according to its balance sheet account balance, which accounts for the cost of the asset minus any depreciation, amortization, or impairment costs.
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