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Question: On March 1, 1984, the Wall Street Journal published a survey of television advertisements conducted by Video Board Tests, Inc., a New York ad-testing company that interviewed 4000 adults. These people were regular product users who were asked to cite a commercial they had seen for that product category in the past week. In this case, the response is the number of millions of retained impressions per week. The regressor is the amount of money spent by the firm on advertising. The data follow.
a. Fit the simple linear regression model to these data.
b. Is there a significant relationship between the amount a company spends on advertising and retained impressions? Justify your answer statistically.
c. Construct the 95% confidence and prediction bands for these data.
d. Give the 95% confidence and prediction intervals for the number of retained impressions for MCI.
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