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Zepler [3.9K]
3 years ago
5

The following data gives the monthly sales (in thousands of dollars) for different advertising expenditures (also in thousands o

f dollars) and sales commission percentages. Sales 245 138 352 322 228 275 560 366 Advertising 16.5 18.0 22.3 18.4 19.0 19.5 30.0 18.6 Commission 10.5 2.0 4.0 3.5 4.5 1.8 9.0 8.5 1. What amount of sales would this model predict for advertising expenditures of 25,000 and sales commission of 8%? [Show your code in "R Code" section. Show the answer in "Answer" section. Leave "Comments" section blank.] 2. Find the correlation coefficients for advertising expenditure and commission compared to sales. Explain the results of these findings. [Show your code in "R Code" section. Show the answer in "Answer" section. Leave "Comments" section blank.] 3. At the 5% level of significance, are advertising expenditure or sales commission percentage significant? Why? [Show your code in "R Code" section. Show the answer in "Answer" section. Include the mathematical notations of two sets of null and alternate hypotheses and the phrase "advertising expenditure" or "sales commission percentage" or "both" along with a justification in a few sentences in "Comments" section.]
Mathematics
1 answer:
Marta_Voda [28]3 years ago
6 0

Answer:

Check the explanation

Step-by-step explanation:

Use the below R Code

Sales=c(245,138,352,322,228,275,560,366)

Advertising=c(16.5,18,22.3,17.4,19,20,32,18.6)

Commission=c(10.5,2,4,3.5,4.5,1.8,9,8.5)

data=as.data.frame(cbind(Sales,Advertising,Commission))

model1=lm(Sales~Advertising+Commission, data = data)

dat2=data.frame(Advertising=25,Commission=8)

predict(model1,dat2)

The predicted value of Sales for 25000 dollar on Advertising and 8% on Commission is 424685 dollars approximately (rounded to 0 decimal places)

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