Please show work in excel Stars Co. wants to advertise its products in the hope that more advertising will result in more sales. The following data have been collected in the past year showing money spent on advertising in a month and sales on the same month: a) Develop a regression equation to forecast the Sales as a function of the Advertising by drawing a scatter chart in Excel. b) Suppose that the company would like to advertise in the amount of 30 thousands. Estimate the Sales in response to this amount of advertising. Month Sales (Thousands) Advertising (Thousands) Jan 1200 30 Feb 1100 25 March 1220 32 April 990 23 May 1190 31 June 1050 24 July 770 22 Aug 1080 28 Sept 1220 33 Oct 1140 25 Nov 740 19 Dec 790 20
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Please show work in excel
| Stars Co. wants to advertise its products in the hope that more advertising will result in more sales. |
| The following data have been collected in the past year showing money spent on advertising in a month and sales on the same month: |
| a) Develop a regression equation to forecast the Sales as a |
| b) Suppose that the company would like to advertise in the amount of 30 thousands. Estimate the Sales in response to this amount of advertising. |
| Month | Sales (Thousands) | Advertising (Thousands) |
| Jan | 1200 | 30 |
| Feb | 1100 | 25 |
| March | 1220 | 32 |
| April | 990 | 23 |
| May | 1190 | 31 |
| June | 1050 | 24 |
| July | 770 | 22 |
| Aug | 1080 | 28 |
| Sept | 1220 | 33 |
| Oct | 1140 | 25 |
| Nov | 740 | 19 |
| Dec | 790 | 20 |
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