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.

Question

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.