The table below shows some data from a known international clothing company. Each row in the table shows sales for a year (in million) and the amount spent on advertising that year (in million). In this case, sales is what we want to predict using the advertising budget. Find the following. Given that: Mean of Advertising =15 and standard deviation = 5 Mean of Sales= 45 and standard deviation = 10 Advertising (Million) Sales (Million) 19 54 10 28 12 43 17 47 8 32 15 22 65 1. Find the correlation coefficient (r). Determine the direction and strength of the relationship? 2. Find the Coefficient of determination. Explain the result (is it a useful model)? 3. Compute and draw Regression line model. 50

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A:

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.