Plot the scattergraph for the data. (ii) Use the data, to develop a regression equation relating advertising expenditure to membership. (iii) Estimate the membership if $40 000 is spent on advertising.
YEAR | ADVERTISING EXPENDITURE ($000) | MEMBERSHIP SUBCRIPTIONS |
2013 | 51 | 62 |
2014 | 58 | 68 |
2015 | 62 | 66 |
2016 | 65 | 66 |
2017 | 68 | 67 |
2018 | 76 | 72 |
2019 | 77 | 73 |
2020 | 78 | 72 |
2021 | 78 | 78 |
2022 | 84 | 73 |
2023 | 85 | 76 |
i) Plot the scattergraph for the data.
(ii) Use the data, to develop a regression equation relating advertising expenditure to membership.
(iii) Estimate the membership if $40 000 is spent on advertising.
(iv) How much must be spent on advertising to obtain a membership of 80 (000)?
(iv) What is the nature of the relationship between advertising expenditure and membership?
(v)
(vi) What are the limitations of the method used in (i)?
Step by step
Solved in 5 steps with 5 images
(iv) How much must be spent on advertising to obtain a membership of 80 (000)?
(iv) What is the nature of the relationship between advertising expenditure and membership?
(v)
(vi) What are the limitations of the method used in (i)?