Ten communities roughly comparable in size, wealth, and purchasing powers were selected to investigate the effect of advertising expenditures on sales of electric vehicles. For each community, the advertising outlay (X, in thousands of dollars) and the sales (Y, in units sold) are shown below: dvertising Expenditure Sales 3.9 7.8 1.1 6.6 3.4 2.5 6.0 32 25 23 30 4.6 25 2.0 1. 2. 3. Find the regression equation for predicting sales from advertising expenditure. Construct the 99 percent confidence interval for the slope of the regression line. Test at the 5 percent significance level the hypothesis that no sales would be recorded if there were not advertising. (Clearly, this should be a one-sided test.) Perform the analysis of variance for this data and carry out the associated test at the 5 percent level of significance. Report the p-value for this test (from Excel, Minitab, or similar) 4. 5. If the prediction equation derived in problem 1 were to be applied to the population as a whole, what proportion of the variability in sales figures could be predicted from knowledge of advertising expenditure?
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