Q: The dataset posted below provides data on sales in dollars and the number of radio, TV, and newspaper ads promoting the concerts for a group of cities. Develop a multiple regression model using the number of radio and TV ads and newspaper ads as the explanatory variables and sales as the response variable. Report the estimated regression equation (all in Excel). Use the model to predict the sales if the number of Radio and TV ads is 20 thousand and the number of Newspaper ads is 55 thousand. (Solve in Excel) Concert Sales Thousands of Thousands of Sales ($1000) Radio&TV ads Newspaper ads $1,119.00 0 40 $973.00 0 40 $875.00 25 25 $625.00 25 25 $910.00 30 30 $971.00 30 30 $931.00 35 35 $1,177.00 35 35 $882.00 40 25 $982.00 40 25 $1,628.00 45 45 $1,577.00 45 45 $1,044.00 50 50 $914.00 50 50 $1,329.00 55 20 $1,330.00 55 20 $1,405.00 60 30 $1,436.00 60 30 $1,521.00 65 35 $1,741.00 65 35 $1,866.00 70 40 $1,717.00 70 40
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.
Q: The dataset posted below provides data on sales in dollars and the number of radio, TV, and newspaper ads promoting the concerts for a group of cities.
- Develop a multiple regression model using the number of radio and TV ads and newspaper ads as the explanatory variables and sales as the response variable. Report the estimated regression equation (all in Excel).
- Use the model to predict the sales if the number of Radio and TV ads is 20 thousand and the number of Newspaper ads is 55 thousand. (Solve in Excel)
| Concert Sales | ||
| Thousands of | Thousands of | |
| Sales ($1000) | Radio&TV ads | Newspaper ads |
| $1,119.00 | 0 | 40 |
| $973.00 | 0 | 40 |
| $875.00 | 25 | 25 |
| $625.00 | 25 | 25 |
| $910.00 | 30 | 30 |
| $971.00 | 30 | 30 |
| $931.00 | 35 | 35 |
| $1,177.00 | 35 | 35 |
| $882.00 | 40 | 25 |
| $982.00 | 40 | 25 |
| $1,628.00 | 45 | 45 |
| $1,577.00 | 45 | 45 |
| $1,044.00 | 50 | 50 |
| $914.00 | 50 | 50 |
| $1,329.00 | 55 | 20 |
| $1,330.00 | 55 | 20 |
| $1,405.00 | 60 | 30 |
| $1,436.00 | 60 | 30 |
| $1,521.00 | 65 | 35 |
| $1,741.00 | 65 | 35 |
| $1,866.00 | 70 | 40 |
| $1,717.00 | 70 | 40 |
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