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This dataset below is a record of amount spent on advertising and the number of items sold.
With this dataset, a predictive model can be performed to estimate the items sold from the
number of cost of advertising.
Advertising
($)
Items Sold
40 15
20 10
70 14
80 20
10 2
120 25
Required Tasks:
a. Derive the simple linear regression equation (between amount spent on advertising
and the number of items sold). (2 Marks)
b. Interpret the slope coefficient and the intercept coefficient. (2 Marks)
c. Calculate and interpret the Coefficient of Determination. (2 Marks)
d. Calculate and interpret the correlation coefficient. (2 marks)
e. Predict number of Items sold when amount spent on advertising is $200 and $60. (2 Marks)
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