Question

Analyzing Advertising Expenditure

As a data scientist of a company, you want to analyze the following data collected by your company which relates the advertising expenditure A in thousands of dollars to total sales S in thousands of dollars. The following table shows this relationship:

Advertising Expenditure (A)	Total Sales (S)
19	325
21	329
21.5	328
23	333
23	331
26	340
27.3	341

1. Determine if the above relation (A, S) defines a function or not.
2. Using Excel, draw a scatter diagram of data. Click here (Links to an external site.) for a video explanation on how to create a scatter plot and linear regression.
3. Using Excel, find the line of the best fit of the models.
4. Add this line to the scatter diagram.
5. Interpret the slope and y-intercept of this equation.
6. Express this equation as a function S of A and find its domain.
7. Predict the sales if the advertising expenditure is $24000.

Answer 1