1. A fast-food chain decided to carry out an experiment to assess the influence of advertising expenditure on sales. Different relative changes in advertising expenditure, compared to the previous year, were made in nine regions of the country, and resulting changes in sales levels were observed. The accompanying table shows the results. Increase in Advertising Expenditure (%) Increase in Sales (%) 2.4 4 7.2 14 10.3 10 9.1 9 10.2 4.1 7.6 1 3.5 2 5 a. Estimate by least squares the linear regression of increase in sales on increase in advertising expenditure. b. Find a 95% confidence interval for the slope of the population regression line.

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A: For the solution of the problem follow the next step.

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A: Answer and explanation is given below

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A: Given,

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A:

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A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.