SOLUTION: 1. A pharmaceutical company is investigating the relationship between advertising expenditures and the sales of some over-the-counter (OTC) drugs wherein it is believed that the sa

Question 918876: 1. A pharmaceutical company is investigating the relationship between advertising expenditures and the sales of some over-the-counter (OTC) drugs wherein it is believed that the sales are dependent on how rigorous advertising was/is. The following data represents a sample of 10 common OTC drugs.
Note that Advertising and sales are measured in millions of Pula.
Advertising Sales
22 64
25 74
29 82
35 90
38 100
42 120
46 120
52 142
65 180
88 230
1. Explain the strength of relationship between the observed variables (3)
2. What would be the value of sales when there are no advertising expenditure (2)
3. Use the line of best fit to predict the Sales if Advertising dollars = P50 million (4)
4. Calculate the slope and explain what it means in the words of the problem (3)

Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!
Using scatter plot function Excel

.
1. Explain the strength of relationship between the observed variables (3) R^2 = .9927 Strong relationship
2. What would be the value of sales when there are no advertising expenditure (2) $6.629M
3. Use the line of best fit to predict the Sales if Advertising dollars = P50 million (4) y = 2.5695(50) + 6.629
4. Calculate the slope and explain what it means in the words of the problem (3) m ~ 2.6 Increaed Advertising Increases Sales
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