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Where: S: sales (unit); A: advertising (unit). Consider the following simple linear regression: SP. +B₁A. 1. Use Ordinary Least Squares Method to estimate ß, and p₁; 2. Interpret the slope; 3. Find the prediction line; 4. Compute the coefficient of determination; that is, R²; 5. What would be the effect of a 3-unit increase in advertising on sales? 6. What would be the effect of a 4-unit decrease in advertising on sales?

Where: S: sales (unit); A: advertising (unit). Consider the following simple linear regression: SP. +B₁A. 1. Use Ordinary Least Squares Method to estimate ß, and p₁; 2. Interpret the slope; 3. Find the prediction line; 4. Compute the coefficient of determination; that is, R²; 5. What would be the effect of a 3-unit increase in advertising on sales? 6. What would be the effect of a 4-unit decrease in advertising on sales?

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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QUESTION S The following table contains yearly data on sales (S) and advertising (A) from 2020 to 2023: S 2 3 4 7 Year 2020 2021 2022 2023 A 2 4 4 10 Where: S: sales (unit); A: advertising (unit). Consider the following simple linear regression: S = B, +B₁A. 1. Use Ordinary Least Squares Method to estimate ß, and p₁; 2. Interpret the slope; 3. Find the prediction line; 4. Compute the coefficient of determination; that is, R²; 5. What would be the effect of a 3-unit increase in advertising on sales? 6. What would be the effect of a 4-unit decrease in advertising on sales?
Transcribed Image Text:QUESTION S The following table contains yearly data on sales (S) and advertising (A) from 2020 to 2023: S 2 3 4 7 Year 2020 2021 2022 2023 A 2 4 4 10 Where: S: sales (unit); A: advertising (unit). Consider the following simple linear regression: S = B, +B₁A. 1. Use Ordinary Least Squares Method to estimate ß, and p₁; 2. Interpret the slope; 3. Find the prediction line; 4. Compute the coefficient of determination; that is, R²; 5. What would be the effect of a 3-unit increase in advertising on sales? 6. What would be the effect of a 4-unit decrease in advertising on sales?
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