TV budget (1000 $) Radio budget (1000 $) Newspaper budget (1000 $) Sales Amount (1000 pieces) 240,1 16,7 22,9 15,9 248,8 27,1 22,9 18,9 70,6 16 40,8 10,5 292,9 28,3 43,2 21,4 112,9 17,4 38,6 11,9 97,2 1,5 30 9,6 265,6 20 0,3 17,4 95,7 1,4 7,4 9,5 290,7 4,1 8,5 12,8 266,9 43,8 5 25,4 A researcher collected statistics on the sales amount of a product in 120 different markets and the advertising budgets used in TV, radio and newspaper media channels for each of these markets. The sales amount are expressed in 1000 units, and the budgets are expressed in 1000 $. The researcher wants to create a simple linear regression model by choosing one among the TV, radio and newspaper advertising budgets to explain the amount of sales. 1)In your opinion, which variable should this researcher choose as an independent variable to the simple regression model? Explain your decision by providing its statistical basis. 2)Construct the simple linear regression model using the argument of your choice and write the equation for the model. Interpret b0 and b1 3)Test whether there is a statistically significant, linear relationship between the independent variable and the dependent variable by establishing the relevant hypotheses at the significance level of α = 0.05. Explain your decision and comment.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
| TV budget (1000 $) |
Radio budget (1000 $) |
Newspaper budget (1000 $) |
Sales Amount (1000 pieces) |
| 240,1 | 16,7 | 22,9 | 15,9 |
| 248,8 | 27,1 | 22,9 | 18,9 |
| 70,6 | 16 | 40,8 | 10,5 |
| 292,9 | 28,3 | 43,2 | 21,4 |
| 112,9 | 17,4 | 38,6 | 11,9 |
| 97,2 | 1,5 | 30 | 9,6 |
| 265,6 | 20 | 0,3 | 17,4 |
| 95,7 | 1,4 | 7,4 | 9,5 |
| 290,7 | 4,1 | 8,5 | 12,8 |
| 266,9 | 43,8 | 5 | 25,4 |
A researcher collected statistics on the sales amount of a product in 120 different markets and the advertising budgets used in TV, radio and newspaper media channels for each of these markets. The sales amount are expressed in 1000 units, and the budgets are expressed in 1000 $. The researcher wants to create a simple linear regression model by choosing one among the TV, radio and newspaper advertising budgets to explain the amount of sales.
1)In your opinion, which variable should this researcher choose as an independent variable to the simple regression model? Explain your decision by providing its statistical basis.
2)Construct the simple linear regression model using the argument of your choice and write the equation for the model. Interpret b0 and b1
3)Test whether there is a statistically significant, linear relationship between the independent variable and the dependent variable by establishing the relevant hypotheses at the significance level of α = 0.05. Explain your decision and comment.
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