Calculate a regression line for the data. What is your forecast of sales for a store with advertising spending of R240,000? R300,000?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.4: Multiple Regression Models
Problem 16P: Suppose that a regional express delivery service company wants to estimate the cost of shipping a...
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Cadbury Schweppes owns and operates a chain of 12 vegetable protein "hamburger" outlets in northern Louisiana. Sales figures and advertising expenses for the stores are provided in the table below. Sales are given in millions of dollars; advertising expenses are in tens of thousands of dollars. Calculate a regression line for the data. What is your forecast of sales for a store with advertising spending of R240,000? R300,000?

Store               1         2      3      4      5       6       7       8       9       10      11      12
Advertising     14       11    15    16     24     28     22     21     26     43      34       9
Sales              6         3      5      5      15     18     17     12     15      20     14       5

 

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