a. A company wishes to estimate a regression line for the relationship between sales and advertising. To arrive at its decision regarding the best model to use, the company has calculated the following three correlation coefficients. The sales in any month depend on that month's advertising with r= 0.28 The sales in any month depend on 50% of the previous month's advertising and 50% of that month's advertising with r= 0.68 The sales in any month depend on the previous month's advertising with r= 0.92 i. ii. jii. Interpret each of the above correlation coefficients and state which of the suggested models you would choose as the basis for predicting sales. Justify your answer.
a. A company wishes to estimate a regression line for the relationship between sales and advertising. To arrive at its decision regarding the best model to use, the company has calculated the following three correlation coefficients. The sales in any month depend on that month's advertising with r= 0.28 The sales in any month depend on 50% of the previous month's advertising and 50% of that month's advertising with r= 0.68 The sales in any month depend on the previous month's advertising with r= 0.92 i. ii. jii. Interpret each of the above correlation coefficients and state which of the suggested models you would choose as the basis for predicting sales. Justify your answer.
Big Ideas Math A Bridge To Success Algebra 1: Student Edition 2015
1st Edition
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:HOUGHTON MIFFLIN HARCOURT
Chapter4: Writing Linear Equations
Section: Chapter Questions
Problem 14CR
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Transcribed Image Text:A company wishes to estimate a regression line for the relationship between sales and
advertising.
а.
To arrive at its decision regarding the best model to use, the company has calculated the
following three correlation coefficients.
i.
ii.
The sales in any month depend on that month's advertising with r = 0.28
The sales in any month depend on 50% of the previous month's advertising and 50% of
that month's advertising with r= 0.68
The sales in any month depend on the previous month's advertising with r = 0.92
iii.
Interpret each of the above correlation coefficients and state which of the suggested models you
would choose as the basis for predicting sales. Justify your answer.
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