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The manager of a furniture company has collected data on the amount of money spent on advertising and sales revenue for the last ten months. The data is as follows
Advertising Expense Sales Revenue
Month ($Millions) ( $ Billions)
1 14 24
2 12 14
3 20 28
4 16 30
5 46 80
6 23 30
7 48 90
8 50 85
9 55 120
10 50 110
a)Determine the regression equation
b) In the context of this problem, interpret the values of b0 and b1
c)Compute SST,SSR and SSE.
d)Compute the coefficient of determination and interpret its meaning.
e)Compute the correlation coefficient and interpret its meaning.
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